Do you think it would be a good idea to put most of my cash into premium bonds for a few months, until
hopefully this storm blows over?

I've been thinking this through for a while. And yes, I'm shifting things into PBs for a while.

Cant do any harm short term,depending on inflation would'nt leave em too long tho

Cheers.

I was thinking to leave them until April and then look for a safe high interest account with a Government backed bank.

Many Thanks

What is the IR on PB (wins averaged out). If its more than around 6% and you are a tax-payer then it would be a reasonable place. You can get 6% tax free on NS index-linked at present.

There is another tread on this. someone called nic says:


"Second, the key important thing to look for is what the expected payout is. This is currently 4%, tax free. This equals a taxable yield of 5.13% if you're a 22% tax payer and 6.67% if you're a 40% tax payer."

I think that answers it well.

Annual rate used to calculate
prize fund for monthly draws 3.40% All prizes are tax-free
Odds per £1 unit 22,000 to 1

http://www.nsandi.com/interest-rates/index.jsp

Thanks. Thats not great. OK for a higher rate payer who wants a flutter without losing the original stake but not what one consider an investment.