Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

Times: Why are we all still in love with NS&I Premium Bonds?

Discussing offers, rates and deals on suppliers
yorkshirelad1
Lemon Slice
Posts: 906
Joined: October 5th, 2018, 1:40 pm
Has thanked: 176 times
Been thanked: 299 times

Times: Why are we all still in love with NS&I Premium Bonds?

#438631

Postby yorkshirelad1 » August 31st, 2021, 12:19 pm

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

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Times: Why are we all still in love with NS&I Premium Bonds?

#438633

Postby Dod101 » August 31st, 2021, 12:27 pm

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

Dod

mc2fool
Lemon Half
Posts: 7812
Joined: November 4th, 2016, 11:24 am
Has thanked: 7 times
Been thanked: 3017 times

Re: Times: Why are we all still in love with NS&I Premium Bonds?

#438645

Postby mc2fool » August 31st, 2021, 12:56 pm

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

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Times: Why are we all still in love with NS&I Premium Bonds?

#438648

Postby Dod101 » August 31st, 2021, 1:06 pm

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

dealtn
Lemon Half
Posts: 6072
Joined: November 21st, 2016, 4:26 pm
Has thanked: 441 times
Been thanked: 2324 times

Re: Times: Why are we all still in love with NS&I Premium Bonds?

#438650

Postby dealtn » August 31st, 2021, 1:13 pm

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.

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Times: Why are we all still in love with NS&I Premium Bonds?

#438654

Postby Dod101 » August 31st, 2021, 1:25 pm

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

dealtn
Lemon Half
Posts: 6072
Joined: November 21st, 2016, 4:26 pm
Has thanked: 441 times
Been thanked: 2324 times

Re: Times: Why are we all still in love with NS&I Premium Bonds?

#438657

Postby dealtn » August 31st, 2021, 1:34 pm

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.


Return to “Bank Accounts Savings & ISAs”

Who is online

Users browsing this forum: No registered users and 5 guests