Banks Or Premium Bonds

[postman44]

Which is the best option investing money in HSBC bank or premium bonds for best interest. Thank you

[bookbinder]

Premium Bonds don't pay any interest.
https://www.moneysavingexpert.com/savings/premium-bonds/

[ubasses]

Interest rates are dire at the moment, you will be lucky to get 0.5% in a Bank apart from their Regular Saver which is 2.75%.
Premium Bonds do not pay any interest so you are relying on winning at regular intervals, Of course, there is always the chance of a big win.
I find I have been getting prizes equalling just over 1% pa this year so far.
Only you can decide.

[Tilly2]

It is also dependent on how much you're talking about. If you can buy £50,000 premium bonds you will probably earn much more than you would by putting it in a bank.

[Hopkirk]

Interest rates on savings? Virtually nil.

Return on premium bonds? Almost certainly nil. But you might win, and you also get to dream.

No contest.

[bhg481]

The interest rate on Premium Bonds is currently 1.4% tax free. Unfortunately this isn't paid to individuals but put into a pot and a draw made to decide who gets the money. This means that each month you stand a chance of getting an amount between £1,000,000 and nothing. It also means that you have zero chance of losing your money because of a bank going bust, although most banks have a guarantee that you will not lose more than about £85,000.

[gollob]

Premium Bonds are a complete waste of money for a normal investment.
£500 invested in 1956 when they started would today still be worth £500. I put £500 in Axa Technical Growth Fund in 2002 and today is worth £7700. Better look for a unit trust and put your money in that

[Peter Pedant]

foe returns - premium bonds - on 25 000 for example you are more likely to get a tax free return
BUT
you cant get your money back can you?
which kinds really is a long term investment

[dannyk13]

Depends how many times you win on Premium Bonds.My winnings over the past two years far outstrip what I would have earned in interest.

[dannyk13]

PP //you cant get your money back can you?//
If you are talking about Premium Bond, then of course you can.You can withdraw any amount you wish at any time.

[Prudie]

I put £30K in Unit Trusts in the late 80s and lost half of it within a year. No thanks - unless you can afford the risk.
Most people I know with a large number of premium bonds win a small amount every month plus there's the chance of a biggie and you can always get your stake back.

[Thisoldbird]

With interest rates virtually nil I'd go for premium bonds.
If rates ever go up again you still have your "stake" money and can choose again. Meanwhile you stand a chance of winning every month.
I did quite well last year on a smallish amount. When an isa matured it's now in bonds.
If anyone can afford to loose the money then play other ways to make a little. Personally I know nothing about stocks and shares..

[retrocop]

I invested £50,000 almost a year ago. My wife like wise. Every month I have won anything between £25 and £75 per month. My wife like wise. To date I have won a total of £825 and my wife £900. My wife has farmed out max sums to several building societies and the total interest is nothing like as much as our NS&I Prize wins.
Eventually,as time goes by I have found from previous experience since retirement in 1997 that the prizes become less frequent . I just withdraw and re-invest two months later and get fresh new numbers. Always appear to work for us.

[tamborine]

Cashed out my ISAs pre covid19. Got a handsome payout & gave it to son for g'kids uni fees. No point being richest in a cemetary.

[david small]

My wife and I did likewise retro. For a while prizes then dried up. We have removed £30,000 for living expenses.
Prizes now obviously rare. I’ve heard that remove and reinvest works as you’ve found. I might try it.