To premium bond or not?

[Bloodyhellmun]

Thinking of adding life savings of 50K int premium bonds. Renting and don’t own house yet. Thoughts?!

You need to speak to a financial advisor not Mumsnet.

https://www.moneysavingexpert.com/news/2026/02/premium-bond-prize-rate-cut-april/

You'll get a better return from putting it in an ISA.
What do you need the money for in the future? It's it a house deposit?

Don't be ridiculous, that would cost thousands of pounds to find out information that's freely available on the internet.

OP, If you're under 40 and are planning to buy, but not within the next year, you need to get as much of that money into a LISA as you can, but you can only put in £4k per tax year.

However, get your skates on and you can put on £4k by 5 April and another £4k on 6 April.

Otherwise PBs are only really suitable if you're a higher rate tax payer who's already used up your ISA and personal savings allowances. They're also not great for putting money in for shorter periods such as a few months as you lose a month on pay in and, if they are suitable for you, they're a bit all or nothing in that they're only worthwhile if you can put in tens of thousands as with smaller amounts the prize structure typically works against you.

You'd be best with a normal cash ISA and savings accounts for the rest. Look online for the best rates. I don't know if the £20k standard allowance is in addition

Have a look at the financial flow chart which can be found by googling. Also it might be worth looking at some good quality personal finance information online such as Meaningful Money or Moneysavingexpert.com. People also recommend the Rebel Finance school but I've not seen that and it seems a bit marmite.

You really don't

As PPs stated, move quickly and you can put £20k into an ISA now and another £20K after April 6th.

I too would go with ISAs, but I have heard worrying things re LISAs so be careful to check the T&Cs before committing to the latter.

Always use tax free wrappers first so you should put it in a an ISA and quickly. Look at Trading 212. £20k tomorrow and another £20k after 5th April. If you’re locking away for 5+ years then S&S otherwise cash. Trading212 do a flexible ISA where you can withdraw and put back in the same year.

Have a look at Rebel Finance, excellent. The return on Premium Bonds isn’t good.

The problem with LISAs is the house must be less than 450k. Once the money is in you can’t get it unless you pay back the 25% bonus. It’s either for a house purchase or pension.

https://www.moneysavingexpert.com/savings/lifetime-isas/

No she dosent. A financial advisor is not needed for such a small amount.

Premium bonds are not good value. There is no guarantee of winning anything amd enty of people have full holdings and win very little.
If you need the money in the next few years then cash ISA is best. If not then S&S will always out perform cash.
If planning to buy the a LISA is a good idea as long as the house you buy will be under £450,000.
A few questions
Where is the money now and what interest rate are you getting?

Are you a higher rate tax payer?

What age are you?

Do you have a workplace pension?

Have you checked your governement gateway to make aure you are on track for the full state pension?

Your answers to the questions above will impact on what is the best course of action.

I think it’s daft to put all your life savings into PBs. I would put 5k in there, the rest in a LISA (if you’re under 40). If over 49, then £40k ISA’s.

No financial advisor needed - just answer these helpful questions.

I would also suggest putting a much smaller proportion of your savings, if any, in Premium Bonds. £5K of £50K is 10%. You probably won't win something every month, and there's no guarantee that you will match the best interest rate you could get elsewhere, but you can get it out within a few days if you do proceed to try and buy a property or if you need the money for other reasons.
But do also look at where your savings are at the moment and consider all the other options - ISAs, cash savings, and longer term stuff if you're not planning or able to buy a property within the next few years, like investments and pensions.

I bought my first premium bonds just over 2 years ago - £100 - April 2024 was the first eligible draw, and added small amounts here and there - I'm just about ahead of what I could have earned in a savings account but that's a matter of luck, and on my £4K plus now I may or may not match what I could have got by putting the money in my best paying ISA or other cash savings account

Here is a lively thread where Mumsnetters with PBs chat and report their winnings or lack of winnings, as they wish - you will see that a lot of these have the maximum investment but quite a few of us don't, and some are moving money out of PBs to other forms of saving.

www.mumsnet.com/talk/money-matters/5485318-premium-bonds-febmarch-2026?page=6&reply=151011232

Questions to think about?

Where are your savings? Do you know what interest rate you're getting and is it the best you can get that otherwise meets your needs? (accessibility, bank branches/online, restrictions)
Your income and tax status? Are you entitled to a personal savings allowance (basic rate/higher rate tax payers)?
Are you aiming to buy a property and if so, what prospects/timescale do you have to do so?
How accessible do you want your money to be?
You can divide your money between different types of savings
Research ISAs - stocks & shares and cash - and other types of savings accounts

There is lots of information (as well as forums) on Money Saving Expert.

In your case I would avoid. Premium bonds have some uses if you are a higher rate tax payer, have maxed out other tax efficient saving vehicles and need fairly easy access. I have the maximum and this year it has produced a return just under 3% with one month to go, so I would need a return of nearly 5% to beat it, plus I have (in theory) a chance that Mr Million will knock on my door one night.

It depends what you are looking for, it's very easy access savings and tax free, but you can be lucky or unlucky and the average rate of return isn't great. An ISA in a fixed rate bond would give you a known return tax free and if you pick properly will give higher than the average premium bond rate. If you have maxed out your ISA allowance and it's not your only savings why not? A bit of fun and a chance of a big win and very safe.

If that is your lifetime savings I would put it where it will earn most.

Premium bonds are great if you're a higher rate taxpayer who has already maxed out all other tax free savings options. But fill up your LISA first if you’re under 40, then your ISA allowance. Go for a cash ISA if you’re looking to buy in the next five years, you can beat the PB rate fairly easily.

I have some premium bonds and it’s fun but honestly there are better ways to make more money on interest etc on larger amounts of money. Unless you’ve used tax free amounts etc. It’s the luck of the draw.

The first questions a financial adviser will ask is what is your age and what are your long terms plans for the money? Is it for a house deposit? Is it for retirement? Likely the best option will be an ISA but the best type will depend on your plans.