Premium Bonds, or other ways to invest

DoubleT

DoubleT

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Matt
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hey guys, im looking for a little info in investment,
im coming into a small lump of money ( although not enough to cover my controlled debt) and was thinking of ways to invest it, im looking to buy a house maybe next year and would like to put what i have on the side.

ive been thinking about premium bonds, my parent invest this way and rate it highly,

is it right that i can deposit my money into premium bonds and still draw out money as i would with a bank ( i know they need notice before withdrawals) but basically if needed i can take my money back out.

is there others ways i could invest , or do you think it would just be better off with a high interest rate saving acount..

how have you invested???

thanks

Matt

:wave:
 
DoubleT said:
hey guys, im looking for a little info in investment,
im coming into a small lump of money ( although not enough to cover my controlled debt) and was thinking of ways to invest it, im looking to buy a house maybe next year and would like to put what i have on the side.

ive been thinking about premium bonds, my parent invest this way and rate it highly,

is it right that i can deposit my money into premium bonds and still draw out money as i would with a bank ( i know they need notice before withdrawals) but basically if needed i can take my money back out.

is there others ways i could invest , or do you think it would just be better off with a high interest rate saving acount..

how have you invested???


thanks

Matt

:wave:
Click to expand...

Its still "your money" and you can get it back but I am not sure how much notice you need to give.
You have to weigh up the interst you would gain in a high interest account against the possibillities of a "high $" win.
After all you are only gambling with the "interest" It seems that the more recent investors are the ones that tend to win, I personally know someone that had several grand return from a recent investment in bonds ( they put in 30G's though)
I have had bonds for a lot of years and won nought! bought a few with a recent wind fall and had a few hundred back, (more than the interest I would have earned) But you also have to wait a clear month from investing 'till your bonds go into the drawIts like everything in life its still a gamble but you don't lose you stake money
 
Go see a 'independent financial advisor'.

The initial meeting should be free. They will do a risk survey and then suggest investments. If you go with what they suggest they get a commission as payment. Cash in your investment early and the commission cost will mean a loss. Long term good advice will make you better off than guessing for yourself - and the investment companies still apply early leaving penalties even if no commission was paid out.

If you say no thanks it costs you nothing but you have had some advice. A good advisor will even tell you if premium bonds are a good idea for you.
 
I've had my premium bond for 46 years and no wining and no interest :(
 
Coinkydinkerley ... :thumbs: ... I had four envelopes from ERNIE in the post this morning ... :eek: ... I had real high hopes ... :D ... but they were only 50 notes each ... :shrug:

Money stays entirely yours without loss as said before and I'm not 100% but I seem to recall 3 months is the notice for withdrawal ... :suspect: ... may have changed though as I don't tend to withdraw ... :thinking:

But as Robert says ... you cannot beat a truly independent financial advisor ... ;) ... but try and find one as comes recommended ... :suspect:







:p
 
Best advice I can give is to pay off any debt you have and are paying interest on.

I bet the interest you are paying on your debt is more than you would make from most investments .... Problem solved. :D
 
Always repay debts first as the interest on them will be significantly higher than your return on investment.

Then.... find something other than P Bonds. The percentage return is historically very very low. Have a bit of a punt with them if you must as a small part of a larger portfolio of investments. But if you want excitement from your investment then nip down the bookies.
 
Stay clear of premium bonds imo. The average rate of 'interest' is less than many other investments, and you stand a chance of earning nothing at all.

I would go with a mix portfolio, using ISA wrappers where you can. Have a mix of cash, unit trusts, and possibly some equities. How you split between these three depends on your attitude to risk. :)
 
I worked out how much I'd need in the building society to earn enough interest for the amount I used to spend on the lottery. Then I bought that amount of premium bonds and stopped doing the lottery. Return from premium bonds is much better than the lottery - and there is still that remote hope of a jackpot!
 
If you're going to use it next year when buying a house then put it in a high interest deposit account. Any other 'investment' is likely to only be any good over a lot longer period. Setting up charges knock a hole in what you invest. Only take advice from an independent financial advisor. Paying off current debt is always the first port of call, particularly credit card debt.

The value of your investment can go down as well as plummet!
 
You can get your premium bonds cashed in within 14 days. It just needs a form filling in and sending off (available from the website) and you get the cash within 10 days I think it is.

I've got a direct debit that buys premium bonds every month out of my wage so I don't notice it going all that much.
 
I was lucky enough to have my grandma invest some money in premium bonds for me and it has given some £50 returns my parents both have some and some month between us we have recieve four or five envelopes from ERNIE, the money is still yours and as matt says you can get it back within two weeks.
I would happy put money in them, stops me from spending it wastefully. But seek advice for yourself. I think there is a minimum purchase thought.
 
I agree with 2blue4u, put the money towards paying off any debt, it will do you more good in the long and the short run.
 
I personally have some money in the portman in the form of a fixed interest bond and ISA. The ISA is good simply because its tax free. The fixed interest bond suits me, because I know how much interest I shall get each year.

My personal recommendation is to go into a building society such as the portman for example, and have a chat. Tell them the requirements you have for your capital and they generally advise the best options to suite.

hth :)
 
thanks for your advice guys, its much apprieciated,
My credit cards are at 0% for a while yet so i will settle one of them up now and the other one at a later date and in the mean time pay the remaining card at twice the rate i was when i was runing the 2, i was paying off £350 a month on each, so now i can do £700 a month on the one, it will be paid of before the end of its 0% period., and also put half of the money i wish to invest into bonds and the other into a high interest account and see how i go from there.

thanks
Matt

:wave:
 
When my partner's dad died about 4 years ago, my partner inherited £300 in Premium Bonds which had never won a bean. He sold them, invested the proceeds in CAMRA's small breweries investment portfolio and they're worth £900 now. Good investment, that man!

The above is a comment, not investment advice. However I agree with those who've said to see an IFA. Or pay off [part of] your debts.
 
Building society interest for standard savings, waste of time. After tax its about 2%. Forget it. Invest it ? you can lose the lot, Dodgy. Spend it on fast women ,slow horses and drink whats left over you can just waste.
 
Investment is a tough choice. theres so many ways to make money, but a lot if it comes down to how much of an active investor you want to be and level of knowledge. Premium bonds are great if you want to just put some money away and forget about it for a while. The downside to PB is, although you wont lose your initial stake, you may also not make any money, so in that respect an ISA maybe a good option.

Personally, i invest in stocks and shares. i like the control it gives me and i like playing an active role in any money i make/lose!

Good luck with it all.
 
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