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SarahBell

Premium bond prize money cut.

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http://www.bbc.co.uk/news/business-38893452
 

Premium Bond prizes will be cut from May

 

The estimated number of tax-free £100,000 prizes each month will fall from three to two, and there will also be two fewer £25,000 prizes.

The reduction is part of a wider cut in interest rates across a range of NS&I's savings products.

Cuts of up to 0.25 percentage points "reflect market conditions" it said.

 

 

 

 But please save for your old age care.
 

 

Edited by SarahBell

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Indeed.

 

7% budget deficit.

But the triple lock on pensons remains + all their freebies.

And tax credits for dossers from all over the EU.

Cut welfare spending FFS! tax credits, pension credits.

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And then Gilt yields will shoot up as they they gilt auctions start to fail.

And they'll have to do the stuff thhey should have done in 2008 then.

 

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I have some, nice to think I might win something however unlikely (I don't buy lottery tickets), I have done okay so far with the £25 prizes...better than the stated odds.  And tax free.

The drop in the number of prizes is Carney's doing...nobody wants your savings...when they can get magic money from the BOE.  NS&I need to follow the market or they will be swamped with deposits...they are turning our money into toilet paper. 

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57 minutes ago, SarahBell said:

http://www.bbc.co.uk/news/business-38893452
 

Premium Bond prizes will be cut from May

 

The estimated number of tax-free £100,000 prizes each month will fall from three to two, and there will also be two fewer £25,000 prizes.

The reduction is part of a wider cut in interest rates across a range of NS&I's savings products.

Cuts of up to 0.25 percentage points "reflect market conditions" it said
 

 

I have a cash ISA that's maturing. and the options I'm being offered a transfer to pay out a piddling 0.75%. I was considering just cashing it in and buying £10k of premium bonds as the payout was 1.5% - obvioulsy I may see 0% if I'm unlucky, but worth a flutter. And now they're squeezing this option too.

Sod it, I'll put a 10k deposit on a terraced BTL hovel in an ex pit village and rent it out to some Roma benefits bludgers...

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With interest rates at the bank being so pathetically low, I still see premium bonds as an attractive place to put 'cash savings' as it carries what can be considered to be zero counterparty risk and the opportunity cost (vs bank savings) is low.

Yes, there's feck-all chance of 'winning' something big but by having the savings in premium bonds you are only 'losing' maybe 0.6-0.8% post-tax interest, with no danger of being co-opted into a bail-in of a failed bank or losing access to the money whilst the government scrambles to cover up the fact that the FSCS is never going to be able to compensate savers in the wake of a big bank busting. 

And on average you can expect to 'win' an amount only slightly less than a post-tax interest payment in a savings account anyway, with instant access to your money.  It's a no-brainer if you are worried about the wisdom of holding bank credit but want 'cash on hand'.

 

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36 minutes ago, Sour Mash said:

It's a no-brainer if you are worried about the wisdom of holding bank credit but want 'cash on hand'.

Interesting idea, something to think about, cheers!

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5 hours ago, newbonic said:

I have a cash ISA that's maturing. and the options I'm being offered a transfer to pay out a piddling 0.75%. I was considering just cashing it in and buying £10k of premium bonds as the payout was 1.5% - obvioulsy I may see 0% if I'm unlucky, but worth a flutter. And now they're squeezing this option too.

Sod it, I'll put a 10k deposit on a terraced BTL hovel in an ex pit village and rent it out to some Roma benefits bludgers...

Tempted myself too, but isnt May closing the doors? 

Take a Look at property 118 they are making a killing (those that arent doing out of philanthropy)

Edited by GreenDevil

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2 hours ago, Sour Mash said:

With interest rates at the bank being so pathetically low, I still see premium bonds as an attractive place to put 'cash savings' as it carries what can be considered to be zero counterparty risk and the opportunity cost (vs bank savings) is low.

Yes, there's feck-all chance of 'winning' something big but by having the savings in premium bonds you are only 'losing' maybe 0.6-0.8% post-tax interest, with no danger of being co-opted into a bail-in of a failed bank or losing access to the money whilst the government scrambles to cover up the fact that the FSCS is never going to be able to compensate savers in the wake of a big bank busting. 

And on average you can expect to 'win' an amount only slightly less than a post-tax interest payment in a savings account anyway, with instant access to your money.  It's a no-brainer if you are worried about the wisdom of holding bank credit but want 'cash on hand'.

 

I get your thinking but in the event of a Government bail in, don't think that National Savings will be exempt..we're all in this together yknow.

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Cashed all mine in a couple of years ago. Returns had been rubbish for quite a while. 

Had better not say what I did with the money or Venger will be having a go again. 

Mr B still has some, nowhere near the max, though.  He won 3 x £25 last month, but that's very unusual now. 

 

 

 

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14 minutes ago, Mrs Bear said:

Cashed all mine in a couple of years ago. Returns had been rubbish for quite a while. 

Had better not say what I did with the money or Venger will be having a go again. 

Mr B still has some, nowhere near the max, though.  He won 3 x £25 last month, but that's very unusual now. 

 

 

 

2 x £25 seems to be the norm for me these days, at least 4 out of the past 6 months.

Edited by Digsby

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7 hours ago, newbonic said:

I have a cash ISA that's maturing. and the options I'm being offered a transfer to pay out a piddling 0.75%. I was considering just cashing it in and buying £10k of premium bonds as the payout was 1.5% - obvioulsy I may see 0% if I'm unlucky, but worth a flutter. And now they're squeezing this option too.

Sod it, I'll put a 10k deposit on a terraced BTL hovel in an ex pit village and rent it out to some Roma benefits bludgers...

Errr, I think you mean, affordable, terraced BTL hovel.

That BBC 'news' is working with me.

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7 hours ago, Mrs Bear said:

Cashed all mine in a couple of years ago. Returns had been rubbish for quite a while. 

Had better not say what I did with the money or Venger will be having a go again. 

Mr B still has some, nowhere near the max, though.  He won 3 x £25 last month, but that's very unusual now. 

BOMAD powered house purchase...?

Actually I am respecting your own market choices, against all the other HPCers who claim those who buy houses, or help enable house purchases, are MSM mindless animals, who are 'controlled' and 'programmed' and who don't understand 'the conspiracy'.   :rolleyes:

They've been claiming the same during a near doubling in London house price values.   It's a market out there, full of adult market participants. :)

Got a renter-saver pal who has £50K in premium bonds.  He said that's the max allowed (?).    I doubt he's got much more than £50K saved.  His own choice.   He's had a few £25s and one £100 win in recent months.  

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3 hours ago, Venger said:

BOMAD powered house purchase...?

Actually I am respecting your own market choices, against all the other HPCers who claim those who buy houses, or help enable house purchases, are MSM mindless animals, who are 'controlled' and 'programmed' and who don't understand 'the conspiracy'.   :rolleyes:

They've been claiming the same during a near doubling in London house price values.   It's a market out there, full of adult market participants. :)

Got a renter-saver pal who has £50K in premium bonds.  He said that's the max allowed (?).    I doubt he's got much more than £50K saved.  His own choice.   He's had a few £25s and one £100 win in recent months.  

Mrs 321 and I both have £50k premium bonds and it averages £50 a month each. (Last 6 months). 

Yep, £50k is the max, they state an average of 1.25% which of course the 'mode' average will be less due to large payments for the lucky few. 

I am ISA Max'd and have the required 8 current accounts earning those higher rates but I opened the premium bonds when I realised gambling interest that would have been earned elsewhere was now a tiny gamble.  

Also as a HRT whose Personal Saving Allowance is well used up....the fact P Bonds are tax free...it was a non brainer. At 1% it still is. 

Why not more bonds and shares? Because my dirty little BTL mortgages (which I pay around 1.7%, but collect the yummy 40% tax relief) remain outstanding and the cash is contra to that. So as S24 kicks in then my mortgages will be repaid. Probably why I advocate S24 so much....tax relief on debt skewers behaviours, even mine.

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Posted on Sarah's comment on Premium Bonds. We hold £100k and anyone who NEEDS to hold cash for a period, has used ISAs, has used the current accounts, has used their Personal Saving Allieance will then definitely then  have P Bonds. 

But as already said on here...this post is super observation. At least half a dozen people I know who have savings have asked me about buying property last year. And everyone I have said....absolutely steer clear unless you are happy losing 50%. ??

but it no joke so many are thinking this way. 

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9 hours ago, ExiledMatty said:

You can get 1.6% outside of the ISA with Atom bank (2 yr bond). Still pathetic I know, but way better than any ISA offering.

 

Two Words - 'Counterparty Risk'.

 

If you want to hold a large lump of easily accessible cash (ie multiple thousands) in a time of financial system uncertainty, then premium bonds are the perfect way to do it.

They can be considered risk free (unlike any bank account) and you have instant access.

What you lose by not keeping them in a savings account is now an inconsequential amount, thanks to ZIRP, even if you got no return at all.

On average though, you should get something close to what you would make post tax in interest on a typical bank savings account, especially if you are a higher rate taxpayer.

 

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22 hours ago, Sour Mash said:

With interest rates at the bank being so pathetically low, I still see premium bonds as an attractive place to put 'cash savings' as it carries what can be considered to be zero counterparty risk and the opportunity cost (vs bank savings) is low.

Yes, there's feck-all chance of 'winning' something big but by having the savings in premium bonds you are only 'losing' maybe 0.6-0.8% post-tax interest, with no danger of being co-opted into a bail-in of a failed bank or losing access to the money whilst the government scrambles to cover up the fact that the FSCS is never going to be able to compensate savers in the wake of a big bank busting. 

And on average you can expect to 'win' an amount only slightly less than a post-tax interest payment in a savings account anyway, with instant access to your money.  It's a no-brainer if you are worried about the wisdom of holding bank credit but want 'cash on hand'.

 

 A lot of that also applies to other NS&I products like Income Bonds or Direct Saver that aren't limited to £50k.

Though of course their rates are also dropping soon to 0.75% from 1% and 0.80% to 0.70%

https://www.nsandi.com/our-products

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