The Lemon Fool

Why are we all still in love with NS&I Premium Bonds?
Sunday Times 29 Aug 2021
https://www.thetimes.co.uk/article/why-are-we-all-still-in-love-with-ns-amp-i-premium-bonds-p39cjl0d9
(paywall, but free account available)

For info; plenty of comments on the bottom of the article on the Times' website

I suppose because of the possibility however remote of winning a jackpot. Someone has to as they say.

Dod

How about 'cos with a decent size holding the close to 1%* return is quite a bit better than the nearest instant access savings account**?

And it's tax free. And is pretty much as safe as you can get.

* 0.9% with £50K according to https://www.moneysavingexpert.com/savings/premium-bonds-calculator/. My current XIRR with them is 0.86%.
** https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#easyaccess

mc2fool wrote:How about 'cos with a decent size holding the close to 1%* return is quite a bit better than the nearest instant access savings account**?

And it's tax free. And is pretty much as safe as you can get.

* 0.9% with £50K according to https://www.moneysavingexpert.com/savings/premium-bonds-calculator/. My current XIRR with them is 0.86%.
** https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#easyaccess

OK but I certainly have not the slightest interest in placing cash on deposit at these sorts of rates. I have cash in N S & I index linkers where I get rather more than 1% anyway. Also tax free and as safe as you can get. Not open for new purchasers though.

Dod

Dod101 wrote:

mc2fool wrote:How about 'cos with a decent size holding the close to 1%* return is quite a bit better than the nearest instant access savings account**?

And it's tax free. And is pretty much as safe as you can get.

* 0.9% with £50K according to https://www.moneysavingexpert.com/savings/premium-bonds-calculator/. My current XIRR with them is 0.86%.
** https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#easyaccess

OK but I certainly have not the slightest interest in placing cash on deposit at these sorts of rates. I have cash in N S & I index linkers where I get rather more than 1% anyway. Also tax free and as safe as you can get. Not open for new purchasers though.

Dod

How are they as safe as you can get when the price changes (more than) daily?

How do you know you will get "rather more than 1%" when that depends on the inflation rate?

I'm not saying they aren't a suitable product for your needs, but they are sufficiently different from a deposit account (or a premium bond) to not be a useful comparison.

dealtn wrote:

Dod101 wrote:

mc2fool wrote:How about 'cos with a decent size holding the close to 1%* return is quite a bit better than the nearest instant access savings account**?

And it's tax free. And is pretty much as safe as you can get.

* 0.9% with £50K according to https://www.moneysavingexpert.com/savings/premium-bonds-calculator/. My current XIRR with them is 0.86%.
** https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#easyaccess

OK but I certainly have not the slightest interest in placing cash on deposit at these sorts of rates. I have cash in N S & I index linkers where I get rather more than 1% anyway. Also tax free and as safe as you can get. Not open for new purchasers though.

Dod

How are they as safe as you can get when the price changes (more than) daily?

How do you know you will get "rather more than 1%" when that depends on the inflation rate?

I'm not saying they aren't a suitable product for your needs, but they are sufficiently different from a deposit account (or a premium bond) to not be a useful comparison.

They are safe in the way that mc2fool meant. Unlike a commercial bank they are not going to go bust. Have I got to argue every point? They as you know protect to some extent against inflation. A standard deposit account does not.. If they are not a useful as a comparison , I am sorry I even mentioned them.

Dod

Dod101 wrote:

dealtn wrote:

Dod101 wrote:
OK but I certainly have not the slightest interest in placing cash on deposit at these sorts of rates. I have cash in N S & I index linkers where I get rather more than 1% anyway. Also tax free and as safe as you can get. Not open for new purchasers though.

Dod

How are they as safe as you can get when the price changes (more than) daily?

How do you know you will get "rather more than 1%" when that depends on the inflation rate?

I'm not saying they aren't a suitable product for your needs, but they are sufficiently different from a deposit account (or a premium bond) to not be a useful comparison.

They are safe in the way that mc2fool meant. Unlike a commercial bank they are not going to go bust. Have I got to argue every point? They as you know protect to some extent against inflation. A standard deposit account does not.. If they are not a useful as a comparison , I am sorry I even mentioned them.

Dod

Apologies I read your product as UK Government issued index linked gilts. I now see you were referring to N S & I index linked bond products. Completely different.