BOOM: Premium Bonds

[ChimpMaster]

Nationwide have announced new fixed term bonds paying up to 4.75%.

Better to put your £50k in there, or keep in Premium Bonds?

From my experience, I get around £50/month on average from Premium Bonds but this month I won £125.

With Nationwide's 3 year bond, £50k @4.75% is around £197/month. The first £500 is tax free so I would pay 40% tax on the £1875 remainder, so tax = £750, leaving you with £1625/year or £135/month.

Close call, but I'd be tempted to leave it in Premium Bonds.

[WTFH]

Nationwide have announced new fixed term bonds paying up to 4.75%.

Better to put your £50k in there, or keep in Premium Bonds?

From my experience, I get around £50/month on average from Premium Bonds but this month I won £125.

With Nationwide's 3 year bond, £50k @4.75% is around £197/month. The first £500 is tax free so I would pay 40% tax on the £1875 remainder, so tax = £750, leaving you with £1625/year or £135/month.

Close call, but I'd be tempted to leave it in Premium Bonds.

That's the thing, it's going to be a close call, but there's no chance the Nationwide are going to give to £1m in a month, which is a possibility with PBs.
Another way to look at them is as a sensible person's lottery. you put your money in, and you still can get it back.

[pr1]

That's the thing, it's going to be a close call, but there's no chance the Nationwide are going to give to £1m in a month, which is a possibility with PBs.
Another way to look at them is as a sensible person's lottery. you put your money in, and you still can get it back.

Could put it in nationwide and buy £75 worth of euromillions tickets each month, then there's "a" chance of getting loads more than £1m back

[jamesbrown]

Another way to look at them is as a sensible person's lottery. you put your money in, and you still can get it back.

That's how I look at it. If you have £50k in there, you're effectively getting close to the headline rate anyway, which isn't too bad currently. Plus the chance of a big win, admittedly a very small chance, but enough to be a bit of fun.

[AtW]

Only 50 quid win this month