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what next after Premium Bonds currently

Discussing offers, rates and deals on suppliers
didds
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what next after Premium Bonds currently

#391471

Postby didds » March 2nd, 2021, 11:51 am

Some time this week Mrs Didds and I will have maxxed out our PB holdings.We will then have circa 25K available to put somewhere (its would be otherwise lounging in a current account).

At age 58 Im fairly risk averse - and with the washout of covid and breixt currently am not overly keen on any stock market based investments as stuff seems to volatile potentially as various "stuff" gets sorted out.

That aside - any other thoughts? "Immediate" availability isnt #1 priority - but equally no longer than a month really. UI dont want to tie stuff up in a 5 year bond for example (usual caveats?).

The only thought i had was to do some comparision site checks for the best paying interest account whilst appreciating that % woht be huge :-)

I must confess tyhat one thought is that interest is obviously so low generally sepaking that I may as well just leave it in a current account ... PBs at least have the benefit of maybe winning something decent

cheers

didds

PS I appreciate this is a variation on a theme as a question but the market etc changes all the time.

MyNameIsUrl
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Re: what next after Premium Bonds currently

#391648

Postby MyNameIsUrl » March 2nd, 2021, 8:26 pm

More info than you might need: https://www.moneysavingexpert.com/savin ... -interest/

Difficult to get much above 0.5% anywhere, and like you I'm risk averse so wouldn't put 25k in a bank I'd never heard of.

Quick answer: Nationwide 0.5%, instant access but limited to 3 withdrawals per year

Itsallaguess
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Re: what next after Premium Bonds currently

#391651

Postby Itsallaguess » March 2nd, 2021, 8:33 pm

didds wrote:
That aside - any other thoughts?


Hi Didds,

It might be worth keeping an eye out for an details of the proposed 'Green Savings Bond' that might get announced in the Budget tomorrow...

There's a few rumours doing the rounds regarding interest rates, one of which suggests that it might look to emulate the Premium Bonds model, and have monthly prizes instead, so depending on any proposed tax-status of those prizes, it might be something to watch out for during the Budget coverage tomorrow afternoon...

Cheers,

Itsallaguess

mutantpoodle
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Re: what next after Premium Bonds currently

#391736

Postby mutantpoodle » March 3rd, 2021, 8:25 am

I am not suggesting they any good as rate is still rubbish...but the LEEDS BS fixed rate bonds allow 25% (check that) withdrawals...so fixing for a long time isnt completely untouchable

Marcus current acct will give 0.5% interest and not limited withdrawals..so better than Nationwide..(and no AWFUL patronising adverts)

stock market tracker should easilly outperform Bsoc rates

my money is thinking stock market rising over next few years...governments will not make any decision that isnt popular in efforts to paydown the debts...its easier to kick it into the future
then when the fan gets dirty, it will have been someonelses fault

swill453
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Re: what next after Premium Bonds currently

#391739

Postby swill453 » March 3rd, 2021, 8:51 am

mutantpoodle wrote:I am not suggesting they any good as rate is still rubbish...but the LEEDS BS fixed rate bonds allow 25% (check that) withdrawals...so fixing for a long time isnt completely untouchable

Seems not https://www.leedsbuildingsociety.co.uk/savings/bonds/

stock market tracker should easilly outperform Bsoc rates

That's all very well over the long term, but lots of us have short(er) term savings that need a home. For example I live off the income from my stock market investments, so I choose to have a cash buffer of about 3 years living expenses to help cope with any downturn in the market.

Scott.

formoverfunction
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Re: what next after Premium Bonds currently

#391741

Postby formoverfunction » March 3rd, 2021, 8:54 am

Unlisted debt, with a bias towards green energy, charity and community service organisations.
You could look at places like Ethex, Triodos Crowd. The Co-Op recently publised a report that suggested that around 96% community interest companies survive over the long term.
Maybe if you wanted to go futher a field, there's WiseAlpha that gives you access to "corporate debt", but the some platform risk.
I have limited exposure to all of the above.
I'm keen to hear more about the "Green Gilt" that looks as if it's going to be available via NS&I, like ordinary gilts once were. I expect it will have a low, but more generous, coupon than other government paper, but no where near the 5% you can get from community/"green"/charity debt.
I've had a look at the Municipal Debt that's been offered via Abundance, c1% coupon. Too low for me, and lacks the hedge that premium bonds offer.
I don't feel there's a lack of places to find yield, but return means taking on more risk. Doing more work and having more holdings.
It's difficlut to find bargains at the moment, even less so on ORB, but that might be coming, for now I'm happy to pick up selective bits of the above under the heading of ethical alternatives!
- Triodos have 2 offer coming along during March April from https://treesforlife.org.uk/ and https://betterfood.co.uk/ (next week?)
I'm waiting on the promised new flow of cases from https://www.axiafunder.com/ there's start up risk, losses greater then capital deployed risk, but portfolio returns have been in the very high double digits (as I understand it) and there's some discussion there might be a "product" coming along with down side protection and c20% maturity yield.
Interesting times we live in, the opportunities for private investors are large, but so are the risks. Diversification has never been as easy or needed.

Gan020
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Re: what next after Premium Bonds currently

#391790

Postby Gan020 » March 3rd, 2021, 11:24 am

didds wrote:That aside - any other thoughts? "Immediate" availability isnt #1 priority - but equally no longer than a month really. UI dont want to tie stuff up in a 5 year bond for example (usual caveats?).


If you are looking at no longer than a month then your choices are:
1. instant access account or
2. 30 day notice account

The best buy savings suggest the 30 day notice accounts are paying less than Marcus instant access.

Marcus pays 0.5% and the good thing is that if you request the money in the morning it arrives in your account within a couple of hours and often quicker.

£25k at 0.5% = £125 a year. Not great but you get a meal for two at a swanky restaurant (outside London) for that, so much better than leaving in your bank paying zero.

didds
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Re: what next after Premium Bonds currently

#391895

Postby didds » March 3rd, 2021, 4:48 pm

Thanks all thus far :-)

Ive DMOR (or more OR!) and realsied that some fixed period ISAs (not that them beign ISAs bothers me given the low amonts of interest gathered over all etc) are effectively "easy access but with a year's loss of interest. Given the PB "fund" is easy access, plus some rainy day stuff sitting aside (5K slush fund sort of thing) may well never be needed "immediately" anyway... and a year's loss of interest may be palatable in such extreme cictcumstances anyway. (There are fixed term savings etc where the money really is locked in and it was these I was rekecting so apologies for a poor spec initially).

Anyway, with a fixed term ISA with a years loss if cashed up early etc in mind it seems there may be something like 1.1% AER with Shawbrook and UBL five year fixed ISAs. Gatehouse appear to have a 5 year fixed term green saver offering ostensibly 1.4% on a sharia profit basis - though its profits are not compunded but paid out annually - and its under the FSCS. vaguely "green" orientated allegedly.


Food for thought but these bans certainly woold come under the "never heard of you" bank scenario as per MyNameisUrl's comment

stevensfo
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Re: what next after Premium Bonds currently

#391905

Postby stevensfo » March 3rd, 2021, 5:20 pm

didds wrote:Thanks all thus far :-)

Ive DMOR (or more OR!) and realsied that some fixed period ISAs (not that them beign ISAs bothers me given the low amonts of interest gathered over all etc) are effectively "easy access but with a year's loss of interest. Given the PB "fund" is easy access, plus some rainy day stuff sitting aside (5K slush fund sort of thing) may well never be needed "immediately" anyway... and a year's loss of interest may be palatable in such extreme cictcumstances anyway. (There are fixed term savings etc where the money really is locked in and it was these I was rekecting so apologies for a poor spec initially).

Anyway, with a fixed term ISA with a years loss if cashed up early etc in mind it seems there may be something like 1.1% AER with Shawbrook and UBL five year fixed ISAs. Gatehouse appear to have a 5 year fixed term green saver offering ostensibly 1.4% on a sharia profit basis - though its profits are not compunded but paid out annually - and its under the FSCS. vaguely "green" orientated allegedly.

Food for thought but these bans certainly woold come under the "never heard of you" bank scenario as per MyNameisUrl's comment


Gatehouse appear to have a 5 year fixed term green saver offering ostensibly 1.4% on a sharia profit basis

I have an account with AJBell - otherwise known by their tabloid style name of 'YouInvest' and their new Savings accounts include a number of Shariah banks that portray the percentage as 'profit' rather than interest. All based in Qatar, though I think one may be in Saudia Arabia They are always a bit higher than the European banks, but I would not touch them with a bargepole. The way they treat women and non-Muslims is disgusting and outrageous and I'm proud to belong to a society that will not tolerate such insults and abuse. We are trying hard to get AJBell to stop them advertising. TLF should take a firm stand!

Steve

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Re: what next after Premium Bonds currently

#392085

Postby mutantpoodle » March 4th, 2021, 8:16 am

noted re my post of Leeds B soc allowing 25% withdrawals
they must have changed it since I moved away from them due to the interest rates
(I did say 'check it')

I too am wary of many of these 'new' unknowns
and am doubly wary of N S & I being put incharge of proposed new green bonds idea, after the screw ups of last Autumn
government should definitely reconsider that idea if they want major result
unless delayed paying out is part of the plan!


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