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Muddy
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03-05-2019, 11:07 AM
1

Better than Premium Bonds ?

What is a better investment than Premium Bonds ?
I have some stocks and shares funds but of course they go up and down and although they do ok such a lot is taken in charges by the fund managers I can only manage about 5 or 6 %

Any ideas ?
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Donkeyman
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03-05-2019, 11:57 AM
2

Re: Better than Premium Bonds ?

Originally Posted by Muddy ->
What is a better investment than Premium Bonds ?
I have some stocks and shares funds but of course they go up and down and although they do ok such a lot is taken in charges by the fund managers I can only manage about 5 or 6 %

Any ideas ?
Im looking for ideas myself Muddy?
Last week l popped into a local money management
company to enquire if they had any products to give me a
relatively safe investment with a better return than the imv
derisory bank ISA!
The guy behind the counter looked at me as if l had got
entry by mistake! you know like when you go in the saloon
bar in your overalls!
Then asked for more details?
To which l asked, you mean money?
Yes, he replied!
On hearing the amount l had available, he thought for a while
then said, You are not going to like this, and then continued
to give his reasons for not wanting my money! and why it was
not worth his while to take on all the administrative work
involved in managing my account!
So it looks as though us lesser mortals are stuck with ISA?
The amount l have is only twenty grand but l thought it
would be worth something?
Apparently not!

Best Regards Donkeyman!
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03-05-2019, 01:27 PM
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Re: Better than Premium Bonds ?

Muddy, l have cashed my Premium Bonds in and put the money into my ISA.
I hardly won anything, maybe £25 a year. I just think, the system is geared up and you only win, what you might have earned in interest for the amount of money you have invested? A big win, which is rare, is a bonus!

I wouldn’t go for anything high risk or, that is tied up for years.
I always think property is always the best investment but not abroad! The thing is, who has got hundreds of thousands of pounds to buy up property?
With lousy interest rates, I think the profitable days of the small investor, are dead.
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Pyxell
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03-05-2019, 01:33 PM
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Re: Better than Premium Bonds ?

Originally Posted by Artangel ->
Muddy, l have cashed my Premium Bonds in and put the money into my ISA.
I hardly won anything, maybe £25 a year. I just think, the system is geared up and you only win, what you might have earned in interest for the amount of money you have invested? A big win, which is rare, is a bonus!
You see, I'm the opposite. As long as I'm getting a return equal to a low-risk investment, I'm keeping my premium bonds.

In fact, I'm quite likely to be buying more.

The more you have, the greater the chance of wins of any denomination.

I mean, unlike the lottery or other forms of 'gambling', you get to keep you initial stake. And with inflation low, there's not much chance of its value being eroded.

No, I'm keeping mine, and buying more.
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03-05-2019, 04:03 PM
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Re: Better than Premium Bonds ?

I'm still putting money into RateSetter accounts - for example, an ordinary savings account will give me 3%, an Isa 4% and long-term savings 5%.

Naturally, those rates are variable, depending both on the market and the type of account, but, for those who don't want to risk their investment, RateSetter offers a credible alternative.

Average market rates in April

3.1% Rolling
4.3% 1 Year
5.5% 5 Year

https://www.ratesetter.com/
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03-05-2019, 04:51 PM
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Re: Better than Premium Bonds ?

It's still a risk though isn't it ?
I looked at the link and I didn't see 4% for an ISA
Maybe the rates have changed .
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03-05-2019, 05:09 PM
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Re: Better than Premium Bonds ?

Originally Posted by Muddy ->
It's still a risk though isn't it ?
I looked at the link and I didn't see 4% for an ISA
Maybe the rates have changed .
The rates are not on the "ad" page but I've just checked for you:

Last Matched Rates
ROLLING
2.7% at 16:52
1 YEAR
3.9% at 16:50
5 YEAR INCOME
5.3% at 16:49

When you invest YOU decide what sort of investment you want your ISA to take - I have gone for 1 Year (interest paid at end of period)

The risk is next to nil - no investor has ever lost money - there is a provision fund should borrowers fail to repay.

I advise checking out the company on the internet to satisfy your queries, though.
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03-05-2019, 05:42 PM
8

Re: Better than Premium Bonds ?

We have found the Premium Bonds still give the best return for your money taking into account it is tax free. having said that we still have ISA accounts etc
Share are far too risky,the trust find set up by my late mother has lost us thousands of pounds gobbed mainly up by brokers (being taken over to our cost)and thieving solicitors who keep changing their staff who were supposed to manage it for us. We had to sack them even against the trust orders and they had lost all the paperwork to do with the trust find setup and share statements.
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03-05-2019, 06:09 PM
9

Re: Better than Premium Bonds ?

Originally Posted by Muddy ->
It's still a risk though isn't it ?
I looked at the link and I didn't see 4% for an ISA
Maybe the rates have changed .
Here's a good article:

https://www.which.co.uk/money/invest...w-ap4576u6ll7m
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03-05-2019, 11:36 PM
10

Re: Better than Premium Bonds ?

Yep Peer-to-peer lending is the way to go.

Ratesetter is very good for those who want good security, very low risk but decent interest rates.

The principle is extremely simple.

Instead of you being the victim of banks exploiting you for profit, YOU get to be the banker instead.

You lend your money out to other people who are looking for loans. Like you, those people don't want to pay exorbitant interest charges to the banks so they come to companies like Ratesetter for loans.

So Ratesetter just acts as a middleman. They match your money and that of all lenders, to the loans that other people want. It's kind of satisfying.

You decide what specific interest rate you want to lend your money out at, and IF there are people out there wanting to borrow money and are willing to pay that level of interest then your money will be matched to their loan requests.

You choose how long you want to loan your money for, 1 year or 5 years and you decide your interest rate.

The system works simply on a "supply and demand" basis. If you specify an interest rate of 10% then you won't find a match with borrowers because borrowers know what % the banks will charge them. So supply and demand on both sides creates a market and there ends up a general interest rate range in which you can get successful matches.

The rates fluctuate so if you sit and watch it for a few weeks you can pick spots where people are willing to pay more interest.

I selected around 5% for 1 year lending and have most of my cash at rates of 4.9%, 5%, 5.3% and so on. Currently the 1 year rates are down at 3%-4% so I was fortunate to pick my spots and wait for matches.

You get your money paid back at the end of that 1yr period plus the interest it has earned.

There are many Peer-To-Peer lending companies but Ratesetter is somewhat unique because it has a special money pot which it maintains. If any of the borrowers default on their loans (which would ordinarily leave you out of pocket) then this money pot, called the Provision Fund, pays out the money. The net result is no-one ever loses out and as Omah says, no-one has ever lost out with Ratesetter.

This is still a tiny amount of risk and that risk is purely concerned with a catastrophic event like another global financial collapse which might see the majority of borrowers all defaulting at the same time. In such a scenario the Provision Fund wouldn't be big enough to cover it all even though it has £millions in it.

In the end then Ratesetter offers ordinary folk like us a way to lend out our money to others at interest rates that are better than banks and lets us do so with very minimal risk.

Other P2P companies don't have a Provision Fund, so there is more risk and a level of borrower defaulting has to be taken into account, but as a consequence the overall interest rates are much higher. Horses for courses.
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