Which exactly the thought process nsi want you.to have.

Either works for me 

I don’t mind helping out (booking karaoke) but supporting act only cheers 

Oops

If you are a higher rate tax payer and you have maxed out your isa for the year it is just about the best place to stash the first 50,000 of your liquid cash

You can't get 5% anywhere, can you, unless you tie your money up for like 180 days or something, or you have a current account with the same bank?  

yeah but 50k+ 5% minus hrt/art is still more than 50k + nothing cos nothing is what ur gtd

isn't the effective rate on premium bonds like 4%?

that's still gonna be better than post-tax interest on any other account

4.something on the pot

but that doesn't feed into individual savings 

https://www.moneysavingexpert.com/savings/premium-bonds/

MSE says £50k of premium bonds has a 66% chance of beating a 4.55% savings account after tax for a higher rate payer. Guess additional rate would push that to 70%+

Actually less certain than I would have assumed tbf.

I'd still take the premium bonds because it's pressing the reveal results button on the app is A+ 

I heart my premium bonds,

I won £100 last month, hoping for the million tomorrow 

nice!

spose the excitement is part of the point

I have won £200 over the last two months on a holding of about £8,000.  Annualised and grossed-up for tax, that’s about 4.5%.

And I’d like the million tomorrow too.

If you hold the £50k max for any reasonable period of time, the prizes average out pretty close to the nominal rate (currently 4.65% IIRC).

I won £10k a few years ago, so am slightly over the average atm

Premium bonds or short dated low interest rate gilts are the way to go for large chunks of cash for HRT/ART payers who've used their ISA allowance (or who prefer to reserve their ISA allowance for stocks and shares).

where do u get ur short dated low interest rate gilts?

Buy them through a platform like AJ Bell or HL or probably lots of others.

yeah but which ONES

https://www.ajbell.co.uk/our-services/investment-options/bonds/gilts

I'm holding TN24:

https://www.londonstockexchange.com/stock/TN24/united-kingdom/company-p…

thx

Wait, there's a gambling/lottery component to youse's "premium bonds"?

If you buy for £98 and redemption on 31/1/24 is at £100 plus final interest payment of 1/16 %, then AER is approx 4.9% of which most is tax free.

Not much better than premium bonds now they've caught up.

As mentioned they're a great place to park cash for higher/additional rate who have maxed out pension and ISAs, especially for people who pay tax on account and need somewhere safe to keep the reserve

Eeyore - that is interesting actually. What is the tax treatment on redemption? Is it subject to CGT?

Phoebs, cockpit — the holders that win a million get a telephone call / visit in person the day before the results are posted. 

Donny - the interest is subject to income tax but the gain (redemption price minus purchase price) is exempt from CGT on most gilts:

https://www.gov.uk/guidance/gilt-edged-securities-exempt-from-capital-g…

That's for individuals. Different treatment for corporation tax.

Don’t ruin the excitement TTD!

Oooh that is useful to know!  Thank you!

Porpoise, each month a machine called ERNIE selects the winning bonds and these are the prizes. There is a prizes app, where just after midnight it reveals your winnings. I usually get a few £25 wins each month. Though earlier this year I had two months in a row with nothing.

TTD, I am not at my london flat today so will just wait until midnight to find out online

It is my dream to be visited by Agent Million. 

I find this quite uncomfortable why can't they just send me an email?

Phoebs, cockpit — the holders that win a million get a telephone call / visit in person the day before the results are posted. 
 

At what sort of time today can I expect my call/visit?

How have I not been aware of this? And how do I get in on the action?

Are you still a Septic or did you renounce your citizenship after Biden stole the election? If you still are I believe your winnings would be taxable in the US. 

https://www.nsandi.com/products/premium-bonds

For maximum efficiency you should wait until the end of the month to invest.

If he were (and I think he isn’t any more) they would have course only be taxable if he told them about the winnings.

‘of course’

we have £100k between us

The last few months:

July - £50 + £300 = £350

June - £50 + £150 = £200

May - £150 + £150 = £300

April - £75 + £50 = £125

March - £425 + £500 = £925

Feb - £150 + £100 = £250

So in 6 months thats a total of £2150 on £100k - a return of 4.2% tax free 

Not bad for instant access and a chance to make more. 

If you're already on the maximum, as you are I think, does that mean you have to take the prizes out?

Yes - you get the money paid into your bank account

Martin Moneysaver seems to have a things against PBs

https://www.moneysavingexpert.com/savings/premium-bonds/

He's a national institution but he can also sometimes be guilty of sophistry. That link is also out of date re the notional interest rate which is now 4.65%

If you're an additonal rate payer and need an emergency fund, PBs are the way to go.

But I keep using my emergency fund money for fun and investing instead of letting it sit in emergency funds. 

notice periods are so long in the UK I feel like 3 months expenses is probably fine, but I was raised on 6-8 months being needed 

Strutter has it plus you can beat the thrill of the email saying you've won a prize 

Oh Pie, if you want thrills get the prize app

The app is great