best way to invest 30k

"Andy Pandy" wrote

Hahahaha! Even first class postage would only require a drop in interest rates of (less than) 0.02%...

"Andy Pandy" wrote

Agreed!

"Roger Mills" wrote

About the same, if you are a high rate taxpayer:-

Interest A/C: 30K x 5%pa is 900 after 40% tax. .vs. Premium Bonds: Say 12 x 50 and 3 x 100 = 900, tax-free. [15 prizes on average over year for 30K bonds.]

Exactly, so am I LOLLLLLLLL!

Irma

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But you can't live in a car...Admittedly, you can't drive a smallholding either. Irma

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But what about running costs/maintenance/storage/insurance? If you actually add up that lot, then your investment will have cost you a small fortune. Unless the vehicle is practically extinct now then its value is not actually that great.

mrcheerful

statistically you should get 1.25 prizes per month, so at the minimum prize of 50 pounds that is 750 per year tax free. In practise the cheque frequency is higher. I do not have the full amount yet, nor have I held mine very long, but the cheques are coming in!!!

mrcheerful

Just an update, the nsandi website prize checker has just been updated for June and I have got another 50 quid !!!!!!!!

That is a total of 150 quid income on a total of 6000 bonds that I have built up over 6 months, so it is difficult to be precise about the income/outlay yet.

Checked further and that is the second 50 quid on the first 2000 bond I bought 6 months ago, so that particular one is 5 percent in 6 months, so about double what a bank investment would give.

mr very cheerful

Sorry, old link -

OK, so that's about 3% net. If you're *not* a higher rate taxpayer, and would normally pay 20% tax on investment income, that grosses at 3.75%. I would have thought you could do better than that in a building society.

Exactly. That point is often made, that premium bonds are basically pointless *except* for HRTPs.

Oops -spoke too soon, another £50 for June....

Remove antispam and add 670 after bra to email

Oh yes they do,,crazy innit?

Remove antispam and add 670 after bra to email

True but then you;d have no chance of winning a high value prize...

Remove antispam and add 670 after bra to email

Me too ....!

Remove antispam and add 670 after bra to email

They cut the rate by 0.05%.

Over 96% of the prizes are 50's, so you'd be extremely luck to get 3 100's a year. The average would be one 100 every two years, and 14-15 50's a year.

But the chance of winning a high value prize is miniscule with premium bonds. They are skewed towards the lower end.

The chance of winning a big prize (5000+) is 1 in 125 million per bond, and for the jackpot it's 1 in 15 billion.

That way they can afford to pay for the envelopes too, and for an army of stuffers.

In practice the cheque frequency is exactly what is published.

Do you really think they are giving away more prizes than they think they are?

Beginner's luck!