Premium Bonds -high rate tax payer
Discussion
I am thinking about getting £30,000 in Premium Bonds as the interest rates are so low and I fancy a bit of a gamble.
Thing is, both my wife and myself are high rate tax payers at the moment, but I will soon be a low rate payer (soon to retire, she works for a few more years!)
Should I take them out in my name or hers?
Thing is, both my wife and myself are high rate tax payers at the moment, but I will soon be a low rate payer (soon to retire, she works for a few more years!)
Should I take them out in my name or hers?
Was recently advised that these are amongst the worst things you can invest in. UNLESS it's money that is yours - i.e. money you have put aside to pay the taxman come tax settlement dates.
Better to get it into something like a Managed Bond, which could return you an income and some relatively low risk capital growth.
That said - I'm only repeating what an IFA said - I'm no expert.
Better to get it into something like a Managed Bond, which could return you an income and some relatively low risk capital growth.
That said - I'm only repeating what an IFA said - I'm no expert.
premium bonds have never been an "Investment"
you are buying chances for a monthly lottery draw to win a prize
your capital never increases
so you are gambling with whatever interest you could have got elsewhere....£30K could be as little as £50 a year interest in a poor cash ISA, so its like putting a £5 on the lottery each month
except the prize fund is worse
you are buying chances for a monthly lottery draw to win a prize
your capital never increases
so you are gambling with whatever interest you could have got elsewhere....£30K could be as little as £50 a year interest in a poor cash ISA, so its like putting a £5 on the lottery each month
except the prize fund is worse
Average payout is 1.5% tax free. They are a good place to hold excess money while you decide what to do with it, access to your funds is more or less instant.
http://www.nsandi.com/interest-rates
http://www.nsandi.com/interest-rates
cjs said:
Average payout is 1.5% tax free. They are a good place to hold excess money while you decide what to do with it, access to your funds is more or less instant.
http://www.nsandi.com/interest-rates
couldnt agree more - have used them a few times in the last few years to put £10-30K for a few months ...and always "won" a few £25 or £50 prizes each month when I held them....certainly more than the interest I would have got in the bank !http://www.nsandi.com/interest-rates
...of course, everyone hopes of one bigger prize, a £10K to £1Million one
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