Savings advice

[Tulipone]

[QUOTES}seeing as it's possible to get a 2yr fixed rate of 0.99%, what percentage of interest would you expect offspring to pay? You could get 2% from regular savers accounts.

Guessing that comes with a hefty set up fee, was meant tongue in cheek and probably buy premium bonds myself with returns being so poor.[/QUOTE]

We have £6k in Premium Bonds and they have been running a tad over three years. Had two £25 wins so far.

 

[JonathanRyan]

Best safish place I know of pays about 7% but the money isn't protected by any government guarantee and it's basically a term deposit so your money may not be accessible when you need it.

And for all that risk you're looking at £7K over a year. If you need easy access trust the French then you could do worse than giving a lump of it to Renault. £20k X 3 @ 3% in Santander (though you will lose £180 a year in fees) and the rest in RCI. You'll end up with an average of about £4k and be able to sleep nights (if you trust the French).

 

[woof woof]

Yes, I actually looked at one where you can stash more than a couple of thousand pounds. The 3% one is a max of £20K, so you'll need five of those If you don't mind splitting and moving it around you can generate a little more, but as most have a limit of £2K or £5K for interesting rates you'll need an awful lot of accounts.

Yup. I think that guy and whoever runs the site like sexy attention grapping headlines but once you look at the accounts there are often limits and caveats and stuff like you have to have x number of direct debits and be on benefits etc... so I stopped listening to him long ago.

 

[woof woof]

Have you thought about putting some into Premium Bonds?

It's a lottery but you don't lose your money...

I bought £30k of premium bonds years ago but for me they've never paid for themselves. There's a site you can go to and type your details into and it tells you how lucky you and your bonds are and I'm... unlucky... also they changed the way they divide up the prizes some time ago and my winnings dropped. They've increased the amount you can buy since I bought my 30k but I haven't bothered buying more as the 30k I have don't pay their way and I'd actually get a better return from a bank but I keep them for the fun factor and the off chance that I might win. I wouldn't recommend them as a source of income though, for fun yes but for income month to month your money is almost certainly better off in a bank.

 

[Cobra]

I bought £30k of premium bonds years ago but for me they've never paid for themselves.

I've know 2 people ( one friend and one family member) who bought 30k worth a few years back, in the first year, they both did very well, and got a very nice return.
But since then virtually nothing.
It does seem those that pay in a healthy sum intially are rewarded, intially.
(But of course its all "random" isn't it? )

And other people will smaller amounts that have never won a penny over many many years.
The moral of the story, never trust anyone with a name like Ernie

 

[boogie man]

Those 123 accounts look decent until you get into the t&c's. You have to have x number of direct debits going out each month for instance. I don't have enough d/ds to operate more than one account. They also charge £5 a month to use the account, so they're not that great a return, although they're better than most I'd agree.

You definitely need to shift money around regularly to get the best rates. I checked one of my accounts the other day and after the bonus period finishes they'll pay me a whole 0.05%, whoopee!!

 

[boogie man]

I've know 2 people ( one friend and one family member) who bought 30k worth a few years back, in the first year, they both did very well, and got a very nice return.
But since then virtually nothing.
It does seem those that pay in a healthy sum intially are rewarded, intially.
(But of course its all "random" isn't it? )

And other people will smaller amounts that have never won a penny over many many years.
The moral of the story, never trust anyone with a name like Ernie

It used to be that if you had the maximum amount invested in PB's you could virtually guarantee to outperform a savings account, year on year. But now they've cut the amount of smaller prizes it doesn't work that way anymore, unless you happen to get lucky.

 

[onomatopoeia]

Those 123 accounts look decent until you get into the t&c's. You have to have x number of direct debits going out each month for instance. I don't have enough d/ds to operate more than one account. They also charge £5 a month to use the account, so they're not that great a return, although they're better than most I'd agree.

The cashback on the DDs for utilities can offset the £5, then you're left with approx £50/month interest on your £20k. If I get my bum in gear I'm going to set one up. It's not a huge return but for something immediately accessible with no risk to capital it's OK in the current interest rate climate.

 

[boogie man]

The cashback on the DDs for utilities can offset the £5, then you're left with approx £50/month interest on your £20k. If I get my bum in gear I'm going to set one up. It's not a huge return but for something immediately accessible with no risk to capital it's OK in the current interest rate climate.

So actually nearer 1.5% net rather than the 3% they quote then? As you say though, it's better than some offerings. I never thought I'd see the day where 1.5% was considered a decent return on an investment... I remember the good old days of getting 10% + from a savings account.

 

[onomatopoeia]

So actually nearer 1.5% net rather than the 3% they quote then? As you say though, it's better than some offerings. I never thought I'd see the day where 1.5% was considered a decent return on an investment... I remember the good old days of getting 10% + from a savings account.

No, 3%. £50/mo = £600/yr = 3% on £20k capital. Remember that no tax on savings interest from this April for most people, so gross = net.

Still very low compared to when I was growing up and my parents were paying 12%+ on their mortgage, but I'm paying 0.74% on mine. Swings and roundabouts.

 

[boogie man]

No, 3%. £50/mo = £600/yr = 3% on £20k capital. Remember that no tax on savings interest from this April for most people, so gross = net.

Still very low compared to when I was growing up and my parents were paying 12%+ on their mortgage, but I'm paying 0.74% on mine. Swings and roundabouts.

Oh yes, of course it's 3%. Doh, my brain isn't working in this heat.