Cash ISA & Premium Bonds - still worth it?

Ditched the ISA some time ago when the tax rules changed so that everyone gets the first £1000 of interest from any savings or investment tax free. We’ve been lucky with premium bonds but I think that’s only because we have the maximum. It’s really hard to find anything worth having forcsavings rates unless you can tie your money up for more than a year - and then it’s only barely keeping pace with inflation.

Most people I've spoken to seem to feel that premium bonds give a better return.
I don't know if that's proven though?

I certainly do better from my premium bonds than most ISAs.

I’m getting 1.4% on the ISA which is the best I could find without fixing. I have the premium Bon winnings reinvested to buy more bonds, last time I worked out my pb winnings for the year I was getting over 1% winnings on premium bonds but less than 1.4%.

I’m putting new savings into stocks &shares ISA, but reluctant to switch too much existing savings from premium bonds or cash isa into stocks & shares ISA at the moment because I think the stock markets are approaching their height and there may be a downturn in the next year or two. After a crash has happened would be the best time to switch.

As retirement looms we're looking at several different ways to boost our income. No ISAs here but we do have a reasonable amount of premium bonds that we seem to get a win with every month although the interest rate is low. We are looking at different bank accounts, some pay as much as 5%, although there are restrictions such as time you can have the account and amount in it. We are also looking at shares as some that pay dividends can give you as much as 5%, of course like anything that pays that amount of interest at present it is a risk. Hopefully we will have a bit more time to keep an eye on things like this and move money about to get a good return.

I’ve calculated my premium bondswinnings over 12 months and it was 1.25%. So lower than what I’m getting on my cash ISA. However do love the chance of winning the million each month!

ISAs are not worth what they used to be, rates are lower and most people don't need the tax free element.

PBs are notionally 1.4% but most people don't get that because a lot of it goes on the big prizes which lowers the percentage for the rest.

There are some good regular saver accounts if you can be bothered to keep money in easy access and move some over each month. I am getting 3.5% on one but you do have to live in the right area to open one.

Have a look at the comparison sites and make sure you tick the whole of the market box so you see them all not just the ones they get commission from. Some of the small local building societies have good rates for those living in the right post codes.

Martin Lewis has some good info on his website.

Martin Lewis I know has nothing good to say about premium bonds but I also like the frisson of excitement each month when I may be a millionaire winner. Somebody has to win, why not me? Most months I win at least £25 and I do not have the full amount.

Recently got paid out for 2 insurance/investment accounts.........I don`t think these are available now, the were both taken out in 1978, so a 40 year run.
Bearing in mind that in those days money was tight, for us at least, they were £5 a month and £10 a month.....They did attract tax relief though, so the £15 became £12 from us and £3 from Inland revenue. This carried on until quite recently, about 10 years ago, then we had to pay the full £15......Of course by now £15 a month is hardly anything.
Anyway, they paid out just short of £30,000 so have been looking what to do with it...20 has gone into a 5 year fixed bond at 2.7%.....fingers crossed inflation does not go barmy.
Already have 5 year fixed rate ISAs, one at 3%, 2 at 2.4%
plus 3 stocks and shares ISAs, one 10 yrs old and 2 from when ISAs began, so these have put weight on nicely.
I supose we have always been frugal, or careful, whichever way you put it sounds mean and pennypinching but it`s not so! Just thoughtful about it.
We did have an endowment mortagage, but it was mature enough to pay out more than was needed, unlike later endowments.
I know it is sometimes hard to contemplate, especially when younger and with many demands on what you have, but thinking long term is the only way to get the best out of savings.
Just reread and sounds like either I am showing off or just money fixated, neither of which is the case!

I definitely think cash isas are still worth it. The main advantage of course is that they are tax free, but the thing to remember is they may not be available in years to come. For that reason I am saving into mine on a regular basis. The interest rates aren't wonderful but those fixed for, say, 5 years pay much better rates.

I can well imagine that if (perish the thought) Labour get into power, then isas could easily disappear, (after all, the money to pay for all these wonderful plans has to come from somewhere) so it makes sense to build them up now whilst they are available.

Premium bonds are difficult to evaluate as it's only based on 'average' wins. I like the excitement of the possibility of a big win each month, so I do have some savings in them. I 'win' several times a year, but only small amounts so far!