Saturday, January 08, 2011

Premium Bonds

I did a lot of calculations the other day to see whether my money would be better off in an ISA than premium bonds. I do like the thrill of premium bonds, despite the fact that we didn't win anything this month. The interest is about 1% which seemed poor. However, my bank offers an ISA at 0.5%, a savings account at ).25% and their current account pays 0.12% and so it made the premium bonds look rather good. there are better paying ISA's but they tie you in and go back to a 0.5% variable rate after a year so were not attracted to me.

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