Premium Bond Income

[NotAllThere]

I just put a few hundred quid into the stock market every month. The volatility smooths out the longer you hold them. Occasionally I sell the really poorly performing shares and try something else.

In the past 10 years, my returns so far have been equivalent to 7%. I did make some very lucky choices, and no, I don't have any inside knowledge about what the Whitehouse is planning.

[Dorkeaux]

Well, that's the last premium bond income for this tax year and the return works out at 2.7%, which I think is about average. But since this income would for me be taxed at 42%, I'd need to have the money returning 4.6% if saved elsewhere to earn more from it.

Of course even 4.6% return is well below inflation. I'm reluctant to invest in stocks given volatility and have enough exposure for now.

Not many good options unless I can benefit from advanced notice of tomorrow's speech by some 'great leader' or other.

Always a problem.
Get get a better return on savings than inflation eats away, but keep volatilty low.
Isn't inflation around 3% right now? How is 4.6% well below?

If you can put it away for a year, there are bank accounts that return 4.65% at the moment.
That would meet your requirement.

I've been doing OK with my cack-handed investment "strategy" buying ETFs and likely looking stocks.
The usual mix of shocking dogs and rockets.
I'm moving more towards ETFs to give my heart a rest, but over time the market seems to do better than gilts, banks, gold, annuities etc.

I honestly don't get Premium Bonds. It's like some kind of lottery?
Do I understand correctly that the average return is around what you and FatJock quote?
Is it the randomness that is the attraction?

[tazdevil]

Not many good options unless I can benefit from advanced notice of tomorrow's speech by some 'great leader' or other.

Yes, when's the great dictator getting done for insider trading?

[sadkingbilly]

mine was 0%

[fatJock]

Mine was 4%.

[Protagoras]

Well, that's the last premium bond income for this tax year and the return works out at 2.7%, which I think is about average. But since this income would for me be taxed at 42%, I'd need to have the money returning 4.6% if saved elsewhere to earn more from it.

Of course even 4.6% return is well below inflation. I'm reluctant to invest in stocks given volatility and have enough exposure for now.

Not many good options unless I can benefit from advanced notice of tomorrow's speech by some 'great leader' or other.