I’m in the money!

We have roughly the same amount of money in a bank /building society and the other in a pure building society. The annual interest I get on the building society money is 10 times as much as that on the bank/building society account. It is purely for reasons of convenience I keep the money in the lower interest bearing account. The building society gives me the equivalent of a few wins on PBs

We plan to spend the money we have in PBs on travel and life generally while we are still fit! So ease of access and the -fat- chance of the big prize appeals. So we've never worked out the return ja...probably losing against inflation though.....?

Santander 123 account earns good interest if you keep £20k in it.

Do any of you with all your savings in PB’s ever work out your percentage return each year?
If inflation is for example, 2%, and you have £10K in premium bonds, each year you hold them you have effectively lost £200.
So you have to subtract that from any winnings you might have had.

We have kept MIL'S bonds in for a year and then will use the cash to buy more floradora

Please note all those with premium bonds you cannot pass them on after your death. They have to be cashed in after a year.

Go over to Martin Lewis' MSE site and look at the advice on savings.
Mainly depends on what you want to do with it, and how accessible it needs to be. Usual advice is a mix. You could consider some in any of the following:
A stocks & shares ISA (long term, there will be a lot of ups and downs over the next few years!)
Some 'locked in' to a higher rate savings account in return for keeping it there (pitfall is that rates may rise & leave yours behind)
Some immediately available in an account that offers a higher rate in return for limited withdrawals (rainy day money)
Some immediately available for things like Xmas & holidays, but earning a small amount of interest. I have a 'regular saver' to pay for Xmas.

The idea of a spread is that if any of the accounts don't work out too well, you haven't lost a great deal.

I would, before doing any of that, think about 'future proofing' your home.

This is of course, purely a personal perspective, I have no qualifications in this, but had a mother who taught me well!

Thanks guys. More premium bonds it is then!

We've done the same as Luckygirl and DH get an inordinate thrill when he wins anything!
So far the max won has been £100 on one bond...……….

When we were going to move from Scotland to London we cashed in our Isas to help pay for the new house. While we waited to buy a house we bought PBs and won the usual £25 several times and one prize of £75 but the icing on the cake was the £5000 my husband won after about 8 months of holding the bonds. My advice is to put the money in PBs and decide later what you really want to do.

All our savings are in PBs - I do not have to worry about updating them or keeping abreast of changes, we make a steady small income and there is a little frisson each month - a rare thing at our age!!!

Depends how big it is and the value of any other savings you have. First £20,000 keep in easy access and short timed deposits or bonds. £20,000 - £50,000 possibly more of the same or unit trusts. Over £50,000 talk to a financial advisor.

I have a mixture of premium bonds, one or two year building society bonds and ISAs. One thing I have done is to make a spreadsheet of how much I have got in each, the interest rate and expiry date. I print this off and put it in a file with all the certificates etc behind. When I pop my clogs, this should make it easier for my daughters. Pension information, list of valuables etc. is also in the file. (I have no intention of going in the near future!)

I agree have always done quite well with bonds.

I’d go for premium bonds too. (We have had a much better return on them than the banks over the last ten years).

I spoke to a financial advisor who invested mine in a mix of shares which did very well.

Premium Bonds. It's a gamble where you can't lose your stake. Also perhaps future proofing your home.

Likewise with an ISA which had matured at the end of the year.
£75 first month, £25 second £75 again third.
And hope springs eternal

More seriously I used my lump sum 8 years ago to do things in the house which were not going to get cheaper. Downstairs loo, replacement guttering and downpipes, landscaping the garden and a new patio and pergolas.
All things which would have needed doing sometime, so a balance between practical things and savings.
But forget ISAs as the rates are risible.

I have done the same thing with an IS A which was getting 0.2% .
Even the bank lady agreed with me.
If I win £25 A couple of times a year it is more than the interest earned.

We bought premium bonds with ours while we decided what to do.