This video is the first in a new series where each month we will examine whether popular ways to save and invest actually live up to their promises. Please drop your suggestions below for what else you want me to cover.
@nateblanche2551
7 ай бұрын
Fantastic idea Damien! I'm definitely here for the journey.
@Jalleur14325
7 ай бұрын
Gold
@LR_Jordan
7 ай бұрын
Uranium
@azharsheikh8337
7 ай бұрын
Gold&Silver please. Thanks. Love your videos.
@guydudley
7 ай бұрын
Great video. I'd be interested in a look at investing in classic cars and similar depreciating assets that people convince themselves are a good investment.
@markmahood3093
7 ай бұрын
I've my emergency fund in premium bonds. I find it handy as I'm not tempted to spend it as its out of my current account. Also i do it instead of the lottery for a small bit of excitement in an otherwise rather dull existence 😂
@demos113
7 ай бұрын
Exactly the same reasons as myself. 🙂
@logosg
7 ай бұрын
😂
@anterosLondon
7 ай бұрын
They are fantastic! Every friend abroud is jelous we have them here.
@marcse7en
6 ай бұрын
That's EXACTLY how I view mine! As an emergency fund, that's safe, and not easy to spend, and can win you money! I won in November, December, January, and March! A tidy sum too!
@grahamnichols1416
6 ай бұрын
Premium Bonds are far better than the lottery. Unlike the lottery you don't lose money if you don't win.
@VegasMilgauss
7 ай бұрын
As a high rate tax payer the fact they are tax free, safe as can be and can be accessed whenever make it a no brainier for emergency fund.
@gdwnet
7 ай бұрын
Totally right. Easy to transfer the money in and kinda forget about.
@thejudge2352
7 ай бұрын
Agreed.
@tommyb8202
7 ай бұрын
Yep, its the tax free element that makes the difference. On average my bonds makes more than saving accounts because of how much the savings would get taxed
@Kazi2812
7 ай бұрын
A cash ISA is tax free too...
@slabbygabby
7 ай бұрын
What looollll. Have you maxed out your sipp and isa
@AliBapcyk
7 ай бұрын
The production quality on your videos is really getting next level. Watching the journey is such a joy. Love to see it.
@DamienTalksMoney
7 ай бұрын
Thank you so much! Only just getting started I want to really see what a finance video can be and currently I am held back by my own lack of skills
@wheeldo
7 ай бұрын
Walking around the barrier into the "fortress of a compound" at the end 🤣🤣
@AliBapcyk
7 ай бұрын
kzitem.info/news/bejne/o6aIwIeGh4yKaqwsi=fRtAF5kFv_JMAI8K “Because sometimes, it’s really hard to actually do your own ideas” 😄
@randomallan3724
7 ай бұрын
@@wheeldo Its an empty building been like that for years :) They moved out and built houses as you can see in the video.
@drfurbz
7 ай бұрын
The production value on these videos is really starting to show, love the content keep up the good work.
@KarlyNoorda
6 ай бұрын
My portfolio for the past 30 years has always been self managed and I own 3 shares of Berkshire Hathaway Class A stock (BRK:A) which I bought in at about $17,000 during the mid 90s, I’m currently liquidating some of these positions to incoporate new Gen. Stocks, but am I better off re-investing into Gold as it seems stocks are a little too unstable right now.
@ashleyclaire3029
6 ай бұрын
Just buy Gold and protect your assets, the stock market is a rollercoaster.
@diddly206
7 ай бұрын
I had just over a thousand pounds in my account when I won £5,000 last year. I’ve decided to withdraw all the money and look at investing instead since I don’t think I’d ever win on it again.
@mikebarry229
7 ай бұрын
I know several people with Premium bonds, some win all the time some hardly at all, so maybe some batches of numbers are luckier than others. Luck is chance and probability at play, the fact that you won £5000 doesnt affect your chance of winning the same amount the next month or the one after that. With your luck I'd have kept £1000 of the winnings and put the other 4k in more PB's. If you win nothing again for the rest of your life it's still not cost you anything as you kept £1000 of your winnings, and you would still have £5000 safely stored away.
@tortozza
6 ай бұрын
Ironically your chance of winning would be six times what it was before
@seanwalsh168
7 ай бұрын
I stopped my DD to lotto around mid 2021. I basically just took my £25 DD for Lotto and instead used it to get premium bonds. I was lucky to win £100 last October which now has my pot at £1125. That’s more than I have seen in return from lotto in a 5 year period. I’d go as far as to say with lotto I was massively out of pocket. This swap was and still is a no brainer for me. When pairing up against lotto.
@Loundsify
7 ай бұрын
I've won £1100 since October. £50k holdings as it's basically my deposit for a house.
@slabbygabby
7 ай бұрын
@@Loundsify Why not use a Lisa? Or have you mixed your Lisa out?
@Yorkshiremadmick
6 ай бұрын
Plus you still have £1125 cash 💴
@seanwalsh168
6 ай бұрын
@@slabbygabby well my logic was this was my lottery alternative. I also am currently paying a mortgage on my first property. And I dont max out my ISA so I didn’t see a benefit in LISA. Unless I’m missing something
@ilikeboringthings9
7 ай бұрын
Premium Bonds = Middle-class Lotto
@JohnBeeblebrox
7 ай бұрын
Not a fair comparison? You don't get your stake back with lotteries...
@reggie5495
7 ай бұрын
@@JohnBeeblebrox It's a fair comparison. It's still a lottery; you're just gambling with the interest.
@jamessmithson-br7rm
7 ай бұрын
It’s like a lottery but just not for chumps, you get entered into a draw every month and can always redeem your initial capital/ amount paid for a ticket.
@FA9082
7 ай бұрын
I once dated a girl who advised me to put my savings in premium bonds and I literally had to stop myself from laughing in her face when she said it 😂
@navarios1
7 ай бұрын
Stick 50k in & achieve average or below average winnings & the tax free aspect is actually relatuvely attractive (assuming you are already using up your yearly savings income tax free allowance) This is pretty much the main selling point though (beyond the offchance of winning big)
@willmoore7582
6 ай бұрын
Well I've had £40,000 invested at one time, however with £21,500 invested I recently won £10,050 which sure reaffirms my faith in NS&I. I would rather take a no loss gamble than give banks my monies to make themselves rich, whilst rewarding me with next to nothing.
@repentmaster2842
7 ай бұрын
It's highly liquid (withdraw when needed), risk-free (guarantee capital preservation) and tax-free, with high potential upside (albeit low chance). Certainly has its unique place and value amongst the heavily-taxed British. As you said, it's a tax-free shelter for the people (especially those who can't afford to hire accountants to setup companies/FICs to dodge tax), so it's doing good for the public
@Banthah
7 ай бұрын
Agree with everything you’ve said, apart from it being risk free. The very real risk is that you don’t win anything, and are losing out on gains elsewhere. Let’s take the average £5k investment and the 5% return that Damien mentioned. Investing £5k after 20 years at 5% you end up with £13.5k - a gain of £8.5k. If you put your money into Premium Bonds and don’t win anything you still only have your original £5k - which every year is losing buying power because of inflation - especially these days. It is not risk free at all. Your risk is an £8.5k loss And that’s at a low 5% rate. Investing in the S&P 500 averages around 9% over 20 years - meaning your £5k would on average become £30k. That’s a £25k risk
@d0palwh56
7 ай бұрын
Couldn’t disagree more. It’s guaranteed capital deterioration (inflation), not preservation, and there is almost no chance of an upside. Yes, buying an index fund carries risk of downside (mostly in the short term), but compare the returns from any year since records have begun - the opportunity cost is enormous.
@jabberwockytdi8901
7 ай бұрын
The British are not heavly taxed, for instance our annual income tax free allowance is double most other european countries. Among those countries with universal health care we have low taxation and if you think the US is lower taxed would you really want to put up with their apalling labryinthine multilayered tax system? - even before you consider that ferociously high cost of healthcare there (where also your care is ultimately capped by the limits of your insurance unless you are very rich )
@repentmaster2842
7 ай бұрын
@@BanthahI agree money de-value over time in the past century, so the wisdom was to flee to hold real assets. But picking the right stock/fund from S&P 500, and time the market right, is not easy for layman. 80% people loses in stock market and funds; I believe there are too much misinformation in the financial market and mis-sales driven by commission and management fees. I still think the loss in real value due to inflation, is the lesser evil compared to stock/funds' investment loss from mis-sale/misinformation (and this hasn't consider capital gain and income tax yet)
@repentmaster2842
7 ай бұрын
@@jabberwockytdi8901British are heavily taxed compare with Singapore and Hong Kong (no capital gain and dividend income tax), and no N.I or 20%/40% income tax thresholds and compulsory pension that may extend to age 71+
@alexisval-e5x
7 ай бұрын
One aspect you didn't highlighted is the security of premium bonds. It's important to note that NS&I is government-backed, ensuring the safety of funds in the event of bank failures or similar circumstances. This makes premium bonds a secure alternative option for holding money also.
@edward92128
7 ай бұрын
I have £50k in premium bonds and on average I get over £200 a month so I don’t think that’s too bad
@adamp6320
7 ай бұрын
Additional rate payer here, yes PB are where I stick my emergency fund. It's liquid, safe, and if I'm lucky enough to win (usually between £25-£100 a month) I don't pay any tax.
@hugslugs
7 ай бұрын
Had £300 for 15 years, never won a penny so cashed out and parked it somewhere with more predictable returns.
@ademcguinness8132
7 ай бұрын
Essentially, if you struggle with good financial habits (such as paying yourself first and leaving your savings alone) then premium bonds can be a helpful tool to help you save. They are not investments in my view, but a lottery ticket where you loan the government money and you might get a prize over your entire life, with the benefit of not affecting your Capital Gains Tax :) People on the internet stating it has a "yield " claiming the chance to win is an effective interest rate is at best misrepresentation and at worse a terrible lie.
@jonathanfaull1880
7 ай бұрын
But it's still nice when you win a couple of hundred quid and Camelot didn't get to keep it. Ah if only John major had been a statesman of Harold Macmillan stature.
@firesaab31
6 ай бұрын
With ISA’s maxed out, as couple we have the max allowance of £100k. It will be 19 months at the end of March. I have had double the return over that period compared to my wife. Against the best savings accounts we are only slightly down on what we would have earned after tax. We are happy to accept that.
@jablot5054
7 ай бұрын
I hold £50k but i don't treat them as an investment. I just like winning something each month, with the chance of £million. Its just for fun.
@Kl3mzwero
7 ай бұрын
And to Damo's videos I say... Alright alright alright!
@DamienTalksMoney
7 ай бұрын
HAHA YES! love this.
@johnmunro4952
7 ай бұрын
Lotto= idiot tax
@andrewcarter7503
7 ай бұрын
Probably not a good investment. But if you're self employed or someone who (like me) gets most of their income from dividends, it's not a bad place to use as a "tax reserve". Putting money aside that you know you'll have to pay to the taxman eventually. So, not as a saving strategy but so you don't get a tax bill you can't pay.
@elainhayter9144
7 ай бұрын
I love PB. I use them to save for big one off expenses such as our family holiday to Florida and now saving for our wedding next year. For me they're risk free and I might win some money along the way (which i have done). Loving all your videos Damien 🤩
@DamienTalksMoney
7 ай бұрын
Yeah I also save my tax money in them! They have a special place in my financial heart
@Waddywoos360
7 ай бұрын
@@DamienTalksMoney the risk-off nature of them vs the stock market where most people will have their pensions & ISA's invested is part of the attraction of premium bonds - parking your tax value in there is a great idea!
@IssieAndLife
7 ай бұрын
This is a solid video! I've been keeping most of my emergency fund and house deposit in Premium Bonds for the last 2-3 years for the exact reasons you describe at the end. I've found the golden amount to hold is between £20k and £25k for "luck" and payout reasons. Using the MSE calculator, I worked out that keeping less than £10-15k or greatly increased how much luck factors into the winnings. In my personal situation I've found I've been better off with PBs compared to best interest savings I had access to by about £100 in the last year. It definitely needs to be compared to savings account as opposed to an investment. Obviously in my case I should've invested 2-3 years ago, but I may need quick access to the money, and I'm not eligible to use a LISA for house purchase.
@roberthuntley1090
7 ай бұрын
My take - ignore the big prizes because you won't win them (and if you do, it a nice exception to the rule). Focus on the steady stream of £100 and below prizes (if you hold enough bonds). With £50k held, I normally win zero two months a year, £300+ two months year, and the rest average out at £100 or so. Total over the last 12 months is £1700, tax free, so not too bad. Also don't totally ignore the mid range prizes, over the last 20 years I've one on £1k prize (I only had £30k invested back then) plus one £500 prize - so these come up once a decade or so. This variability makes it futile trying to compare the "investment rate" with other ways of saving, one lifetime is too short to average out these effects.
@4444aliraza
7 ай бұрын
I think this proves the point Damien is making. Thanks for sharing.
@Al_Does_Stuff
7 ай бұрын
The fact you get cash out is nice, however even at 30k 1k winnings is about 3% assuming the rest of the year ran even with your averages (which it probably wouldn't as your averages are for 50k) your hitting 9% tax free return for the big win year. Taking your 50k and your average return it's actually about 3.4% YoY which is a bit meh. I think PBs are a good emergency fund as it's a bit of a set and forget with no tax implications but not great for wealth creation. I do pay into premium bonds regardless as I find it convenient to have as a ready cash source which can be useful for throwing into ISAs and the like at the start of the year. I do however wonder if with my level of income I'm better off elsewhere.
@Waddywoos360
7 ай бұрын
@@kieron8051 That is assuming you haven't already filled up your ISA allowance. The real question is whether its better to put it into a regular ETF and pay capital gains or park in premium bonds for tax free growth. Given market exposure through pensions and ISA, my view would be to go the NS&I route for at least a certain amount as its a risk off asset to balance you out.
@KyleGoslan
7 ай бұрын
Ouch! This is very unlucky, I’ve less than 30k invested and won 10 times over the last 6 months…none of them £25 either.
@usgreth
6 ай бұрын
In between here, also less than 30k but about 10 wins over 12 months, you got lucky with none of those being £25! @@KyleGoslan
@TomARowly
7 ай бұрын
Not for the individual - but great for the government
@MoneyGist
7 ай бұрын
I think the original problem was referring to this "investment" as "bonds."
@mattsennett
7 ай бұрын
I got £1,500 last year on the full £50k. For me it's the best place for my emergency fund and I am happy to "pay" for a bit of spice each month when the draw comes around. You never know your luck 🤞🏻
@sebluketravis2438
7 ай бұрын
don't buy spice, it is an addictive drug and many people end up on the streets.
@markwilliams4274
3 ай бұрын
Do your winnings compound over the years or are you forced to cash out your winnings.
@mattsennett
3 ай бұрын
@@markwilliams4274 If you hold the maximum £50k you have to take the winnings. If you hold less than that you can build your bond total or take the winnings.
@thehallstar4642
Ай бұрын
But 50k in a 5% savings is £2500
@mattsennett
Ай бұрын
@@thehallstar4642 yes it is but you will then have to pay 40% tax on that.
@Nates33
7 ай бұрын
What a video Damian! Loved the new format, loved the structure of the video and the fact that it contained everything that it needed and still wasn’t boring or too long. Bit of history, a few puns and jokes, maths and taxes of it all and then the personal reference and your personal take. Great video overall, keep up the good work!
@asmith9140
6 ай бұрын
put it this way spend a £1. On lotto and it's gone wbut save those pounds up and buy premium bonds then you've a chance of winning something or cash them in and get your money back
@LynneF-jx2uj
7 ай бұрын
Very informative, Damien. I have held some NS&I index linked savings certificates for years as another tax free option. Shame they are so rarely available now!
@brianwillson9567
7 ай бұрын
Index linked. So glad I made the maximum subscription, issue after issue. But even then they rig the return by changing the index to a doctored lower one.
@Godonstilts
7 ай бұрын
I'm so upset. You've come all this way up North, and didn't even let me know. Should have dropped in for a brew!
@MrDuncl
7 ай бұрын
One of the Premium Bond leaflets had a great summary on the front. "Win £1,000,000. Your money back if you don't."
@DarrenSmith-tq2xz
3 ай бұрын
Your capital is becoming worth less and less
@MrDuncl
3 ай бұрын
@@DarrenSmith-tq2xz But not as less as a non ISA savings account and even less less than a stack of £20s. Yes you could have invested the money in Nvidia or FTX. Hard to choose isn't it ?
@DarrenSmith-tq2xz
3 ай бұрын
@@MrDuncl no one is talking about counterparty risk at the moment and having capital in the bond markets is a risk of going broke its up to you what you do with your capital just remember that it is at risk if the other party defaults and when this happens in my opinion based on facts then no one can complain about it and say that they weren't worned all stock markets are way over valued and we will see a 80 percent correction at some point and then they will be gunning for people who told them it was safe and sound look at the global debt it can never be paid back have you heard of the dod Frank act if you haven't I surgest you Google it
@progress2success402
7 ай бұрын
8:17 Damian this is one of the most important things I have ever heard you say that I don’t think a lot people understand it! Could you cut this into a short to expand its reach!! This I feel aligns with your purpose/goals 😉
@eunicef1
7 ай бұрын
It's a good place to store one's emergency fund.
@ivaneft
7 ай бұрын
Now I realised why the premium bonds are tax-free. Because they are a lottery 😂
@d0m96
7 ай бұрын
Your videos are just getting better and better. Going on location, and interspersing these historical videos is awesome!
@DamienTalksMoney
7 ай бұрын
Thank you very much! Glad you enjoyed those points as it makes the extra effort all worth it
@Andrew-pd6ey
7 ай бұрын
I wonder how many gambling addicts know about this. I like the idea of a recurring lottery ticket, I gamble a little not much, but it could go into premium bonds instead.
@ArtistisMe
7 ай бұрын
Nowt wrong with them. Purchased, won prizes, withdrew funds... purchased again & still winning more. I was working class eventually retired, early admittedly. I've always won more than I'd get from any bank in interest, so it's great as far as I'm concerned.
@ridzyr03
7 ай бұрын
Premium Honda are only good for people who have money. Unless you have thousands of pounds. You’re never going to win. Put it elsewhere.
@Piner5074
Ай бұрын
I’ve £50k ‘invested’ in Premium Bonds because I’ve maxed out my stocks and shares ISA allowance over the last 6yrs, and I’m also a pensioner so can no longer contribute to a pension fund. For me it’s just somewhere to park some money virtually risk free as opposed to the aforementioned ISAs, and where the earnings are also free of tax liability, and any monthly winnings I receive just supplement my pension… or occasionally not, they are also quite accessible should I need to withdraw any further funds should the need arise. All this means I can leave the ISA’s untouched to grow and to mitigate any loss of earnings in the premium bonds in relation to inflation. I feel this all gives me a balanced risk on my investment portfolio, letting me supplement my pension while leaving all my capital where it is until I need it, or choose to start spending it. They’re not for everyone, but for those in particular circumstances, they’re ideal. At least that’s how I justify them with my man maths 😉😂
@richy5314rp
7 ай бұрын
I agree completely it’s not an investment and with inflation you lose a little but I still do it. Have you done a video on trading 212? They pay interest on any uninvested cash but your money is invested in a financial product so doesn’t get the fscs financial protection. I opted out
@MaxwellBoulton
7 ай бұрын
Damien On Location and Studio Damien works well and helps break up the story telling, would love to see more of that! Keep it up Damo! -Max
@scoobydoo12ism
7 ай бұрын
Finally, someone from a younger generation than myself giving good quality investing advice. Keep it up mate…loving the “out and about” style of video too, it’s a good concept, makes everything feel like a mini documentary rather than someone sat in a boutique studio rattling off shite…that’s when the viewers attention span falls off, keep up the good work pal💯👍🏻
@jamesbarry1739
7 ай бұрын
The instant access is also a big plus. It's where ive stashed my deposit for a first home and Im getting better returns than with instant access savings accounts. With the unrealistic caps on help to buy it seemed the best way to go.
@schopesonline
7 ай бұрын
Have you considered a LISA?
@jamesbarry1739
7 ай бұрын
@@schopesonline I live in London, so it's the same threshold
@JHA854
7 ай бұрын
My mum bought me £250 of bonds when I was a baby, I'm currently trying to claim them back so I can put them in my ISA but I'm pretty sure they are still worth only £250 lol. I think I might have one small win since 1997.
@jamessmithson-br7rm
7 ай бұрын
Good to know that I have better than average great luck. I love Premium Bonds.
@lyracian
7 ай бұрын
I have heard it all before but did enjoy the way you presented it. For me Premium Bonds are my emergency cash fund due, as you said, to the tax free return. Once I have 20k in my ISA each year then spare cash goes into bonds.
@nikoc3585
7 ай бұрын
Make sure you pump your SIPP to £60k max before you do! You can spend a SIPP on commercial property, gold bullion at the royal mint, stocks share etc!
@lyracian
6 ай бұрын
@@nikoc3585 That locks it away until you hit retirement age though. If I have a crisis then premium bonds are an easy access option.
@DarrenSmith-tq2xz
3 ай бұрын
And it's all at risk enjoy the rest of your life being poor by the day no one understands that you have a counterpartie and when we have another crisis which is going to be 2008 on steroids banks are insolvent no deals no loans and no deposits get ready for the banking bust by design you'll own nothing and be happy
@MarkHanna824
7 ай бұрын
This is so weird, I was going to comment on your next vid asking your opinion on premium bonds! Always giving us the content we need!🧡
@justlisten82
7 ай бұрын
Keep up the great work Damien! Thanks for the work you do. Enjoy your Sunday.
@kevinu.k.7042
7 ай бұрын
A very good video - Thanks I've always wondered about this.
@bonse1
6 ай бұрын
I dont feel like people use premium bonds as a "serious" investment. They do it for easy no risk (realistically) "fun" with emergancy access if required.
@19grand
7 ай бұрын
Had 50ks worth for 6 months, never again.
@cantbendknee
7 ай бұрын
Well it's the 25th and they haven't contacted me so I guess I haven't won the big money :(
@goober-ll1wx
7 ай бұрын
The only time they ever make sense is if you have maxed out the pension allowance and your ISA and you kids ISAs and have nowhere else to put money and even then....they don't really make any sense 😂
@charlieboyvespa8610
7 ай бұрын
Agreed!!
@MrDuncl
7 ай бұрын
The only reason I am maxing out my pension is that I am 61. Premium Bonds made far more sense when I was looking to buy a house fifteen years ago, although I am back at the maximum so get a random bonus appear in my current account most months.
@goober-ll1wx
7 ай бұрын
@@MrDuncl mathematically you're losing money...
@swast4
7 ай бұрын
Totally agree and don't forget your kids SIPP. You put in £2880 and the government add another 20%. Invest it in a tracker fund and hopefully it will help them when you are gone and help them to start investing earlier than later as I suspect they may not get a state pension.
@paulm6742
7 ай бұрын
Superb explanation, I have a tiny £500 in premium bonds I've had for a while but I've wasted untold amounts on the lottery. Will follow your suggestion and pay into my bonds instead.
@RealFahrenheit
7 ай бұрын
I had Premium Bonds since I was a kid in the 90's. Not once did I win any amount. I had forgotten I had my bonds until last year, then I hit up NS&I and sold them. I walked away with £1800. That's £1800 that had sat there NOT accruing interest for almost 3 decades.
@Al_Does_Stuff
7 ай бұрын
Do you know if that was the original amoun? Going that far back any winnings would most likely have been posted to you. I know from the web dashboard you can choose to automatically pay back into and buy more PBs now but don't know if the same was the case going further back.
@JHA854
7 ай бұрын
That is sad. If you got even 5% on that each year and reinvested, you'd be looking at over £6000.
@RealFahrenheit
7 ай бұрын
@@Al_Does_Stuff yeah, I've got the original paper documents from when my Gran bought them for me. It's the original amount.
@RealFahrenheit
7 ай бұрын
@@JHA854 that's exactly what I said that to my dad when I cashed out. Based on my experience alone I couldn't recommend Premium Bonds to anyone.
@Al_Does_Stuff
7 ай бұрын
@@RealFahrenheit that does suck then I wonder a little if they've managed to computerise everything entirely successfully at times. It must be a headache having damn near 70years of info with a huge amount of it having been transferred from paper copies
@rinakaur7245
7 ай бұрын
If you are higher rate tax payer & maxed out ISA then worth stashing any savings into PBs.
@DamienTalksMoney
7 ай бұрын
Yep I do cover this
@jam99
7 ай бұрын
Low coupon gilts (e.g. TN25) are possibly better at the moment for large chunks of cash. 4.6% AER today after 40% income tax.
@Dr.JubairsFinance
7 ай бұрын
Die-gress, I wonder how unnoticed that joke was ☠️
@Optimised7
7 ай бұрын
Are you Martin Lewis Jr? He would be so proud of his unknown child. Damien your channel is wiked!
@farab4391
7 ай бұрын
What no one ever mentions when having a discussion regarding premium bonds is the £85,000 that’s guaranteed per institution when they go under. In these uncertain times when any company can go under, I would like to know I’ve at least tried to minimise my exposure. So once I’ve put the majority of my money in the 4 institutions I trust the most, I’m happy with £50,000 sitting in premium bonds, because I know that money is safe. With the added excitement of maybe winning something big 😀
@Waddywoos360
7 ай бұрын
This is spot on. For people with larger assets, it can be hard to find enough protected parking sports for the risk-off portions of their portfolio. You can basically treat NS&I like another banking group in that respect.
@Loundsify
7 ай бұрын
Very wise, would be nicer to get around £200k the yanks get guaranteed.
@farab4391
7 ай бұрын
@@Loundsify agreed, or at the very least have it go up with inflation. the limit stays static for too long.
@PaulL42654
6 ай бұрын
As NS&I is backed by the treasury, the £85,000 limit doesn’t apply, you’re protected up to an unlimited amount
@Loundsify
6 ай бұрын
@@PaulL42654 is that true?
@zzwoge007
6 ай бұрын
A friend of mine actually won £1m 😃😃😃😃
@Me-ll4ig
7 ай бұрын
Great video again Damien. I’ve never seen PB as an investment but just a prize draw. It always puzzled me why PB advertised it as such? Your video explains it brilliantly.
@Armadyllo
7 ай бұрын
Good video Damien though we should not forget about the Taxman when we talk about the interest gains from Savings accounts.
@playingFTSE
7 ай бұрын
Got Jonathan Pie feels here at the beginning
@DamienTalksMoney
7 ай бұрын
I love him. So I will take that
@playingFTSE
7 ай бұрын
@@DamienTalksMoney had a beer with him before COVID - he's just as funny out of character
@DamienTalksMoney
7 ай бұрын
@@playingFTSEreally!! That is incredible
@8G00SE8
7 ай бұрын
1:04 I think you are being generous with the governments intentions there, the money they get from NS&I is used to feed the national debt, they must have known most people wouldn't purchase Gilts so gave them these instead, currently at below BOE base rates.
@MrDuncl
7 ай бұрын
NS&I used to offer all sorts of index linked bonds but they can obviously borrow cheaper elsewhere these days.
@Gizmo10777
7 ай бұрын
Damo on location. Love it! I’d totally forgotten premium bonds existed!
@BRNN-
7 ай бұрын
As a young person just starting out my savings/ investment journey is this something I should be saving into or should I start off with S&S ISA’s going into index funds? Any advice would be greatly appreciated!
@laurelharper123
5 ай бұрын
I like investing in close-end funds that pay monthly dividends. The trick is to hold long term and reinvest the monthly dividends plus buy more shares on a monthly basis or whenever you can afford to. This can be easily done because close-end funds are bought and sold on the stock market just like regular stock. That'd be enough to create a portfolio that would pay you between $50k to $70k in dividend income
@MrDanbowz
7 ай бұрын
Personally i think if your someone who plays lottery/scratchcards then your better off buying this since your ticket doesn't expire and you can reclaim the full amount back that you built up over time. The other option i could see is long term planning for your passing to help with costs.
@chrisdaviesguitar
7 ай бұрын
Had premium bonds for 10 years, never won a penny, wondering whether to sell up to be honest.
@Timingp
7 ай бұрын
I don't know about others but I have definitely got a better rate of return from premium bonds, than I would have if I had kept it in the bank.
@Asif24960
7 ай бұрын
I put in the full £50k 3 months ago. In Jan I won £225 and in Feb I won £325.
@hobotraveler4468
7 ай бұрын
They’re haram bro. Interest and gambling in one lol
@Zrinq
7 ай бұрын
I treat them as a bit of fun each month. I even get excited if the doorbell rings around the end of the month, thinking it might be the Premium bond man/woman. Plus, we open the prize app on 2nd day of each month to see what prizes my partner and have won and celebrate. In June we won over £1000 and between us average about £250p.m in the past year. I know full well the prize rate will decrease, but are fine with PBs atm. I never get excited about getting the guaranteed interest in my other accounts.
@michaeltang6290
6 ай бұрын
There is also the psychological element that encourages people to save. The payout may be nothing but the value not burning the cash has value, what that exactly is is difficult to ascertain.
@Jason-np2bp
7 ай бұрын
Damien, I really liked this video; I genuinely learned a significant amount. I thought the way you constructed the argument was really good. Keep it up!
@DamienTalksMoney
7 ай бұрын
Thank you!
@smeg3519
7 ай бұрын
Fortress 😂 proceeds to walk around the barrier 😂
@andyburton8346
7 ай бұрын
Might seem stupid question but once over the £1000 allowance as basic rate tax payers what is the rate interest is taxed at????
@johanndork5364
7 ай бұрын
At your top tax rate. 20/40/45%. PB are free of tax liability. Interest paying accounts are not. Never won anything on my PBs…..
@DamienWilde
7 ай бұрын
Lads with best first names rise up 💪🏼
@DamienTalksMoney
7 ай бұрын
ASSEMBLE!
@nicoles_handle
6 ай бұрын
thank you damien you're a lovely bloke!!!
@garybenn9482
7 ай бұрын
It's where I keep my 10 month emergency fund and my monthly holiday savings. It's a bit of fun. I like that it's easy access without the psychological pitt falls of an instant access savings account that I tend to dip into more than I should. Premium bonds prevent me from doing that for the fear of missing out on the prize.
@helder869
7 ай бұрын
Those bonds are tax free which makes a good difference. And people love positive skewed investments. That's the same reason people prefer lottery like stocks (growth) over value stocks
@georgeacres4
7 ай бұрын
That merge at the end from voiceover to continuing the sentence outside NS&I was smooth... didn't go unnoticed!
@DamienTalksMoney
7 ай бұрын
💁🏼♂️
@Narky
7 ай бұрын
If you're a higher earner the tax free prizes from premium bonds are worthwhile like you said Damien. I've had two maxed out accounts at premium bonds for a few years and the fact i don't need to pay tax on the winnings is why i keep it running.
@gkhan3911
7 ай бұрын
I guess they’re an OK option if you’re fortunate enough to have maxed out your various savings allowances and ISA’s and still have some money to put away tax free.
@kaxar6954
6 ай бұрын
Someone who had only £100 invested, won £100 000 in the March draw.
@DamienTalksMoney
6 ай бұрын
Very lucky
@bertiewooster3326
7 ай бұрын
The NS&I could not repay you if everyone said , money back please !
@Ken_H_
7 ай бұрын
I have my emergency fund, basically a years salary in them, prizes paid to their savings account and then once the interest is paid I withdraw and pay into my stocks and shares ISA. Accept it would be best to pay any prizes into my ISA monthly but I like keeping things simple.
@AliciaSykes
7 ай бұрын
Reason I hold Premium Bonds, is because I love the thrill of knowing I have (a tiny) chance of winning big. I use the money I'd otherwise be spending on Lotto tickets. I know it's not an effective investment alone, but it slightly balances the high risk of my stocks and shares ISA, and means I'm not loosing money playing the lottery.
@MrDuncl
7 ай бұрын
My Stocks and Shares ISA always seems like a far bigger gamble than Premium Bonds.
@accesszero4803
7 ай бұрын
So if i put 50k in , do i get 50k back if i sell?
@theroadlesstravelled928
7 ай бұрын
Yes
@Jalleur14325
7 ай бұрын
Great video with old clips and history. 👏🏻 - great editing. I have money invested but have made probably about 1-2% yield over 5 years on average. Mostly I get £25 (every 3-4 months approx), but once I got £1000 (probably to keep me invested!). I invested at a time when there was 0% at the bank.
@SUSSYMEMES
6 ай бұрын
I've made 50% gains on Nvidia in the last year. For at least this year thats where my funds will sit
@harrisonshaw513
7 ай бұрын
Great video again Damien. The editing and story telling was brilliant. I think you could have talked more about the entertainment factor of them which you touched upon at the end.
@carguyuk7525
7 ай бұрын
If you have spare cash put it into your pension.
@LEWIS1992
7 ай бұрын
Great video! Well scripted, well edited, and back to your roots. Thank you! :)
@chips8388
6 ай бұрын
Umph, you mention the prize calculator - it also has a how lucky calculator. It tells me I'm very unlucky (2950 in prize money from 50k over 3 years). 100% of people with 50k should have received the amount I have in winnings. But *next* month is *MY* month, for sure. FOR SURE!!!!
@4444aliraza
7 ай бұрын
This is what I needed to hear. Thanks for taking it the extra mile!
@demos113
7 ай бұрын
Christ man, that was a lot of waffle to wade through to get the info. 😐👎
@alistairmcleod7273
6 ай бұрын
If you are a higher/additional rate taxpayer then zero/low coupon gilts are your answer. The yield to maturity on gilts maturing 2025/2026 are currently 4.6%/4.1%. Buy the bond at 95/96 hold to maturity (i.e. get 100 back) and the capital gain is tax free.
@ProfoundFamiliarity
7 ай бұрын
Great video. I'm with you on this one. I wouldn't invest in PBs. My family love them though. They like the occasional joy of finding out that they've "won" something. I was trying to convince my dad and sister that I only hold on to my old £100 premium bond (the physical piece of paper) from the 1980s for sentimental value. I don't think they understood but such is life!
@snoopys14
15 күн бұрын
My mum loves it as she hates risk, I kinda like it but I wanna and do take far more risk Crypto Employee share save scheme Index funds High yield savins accounts
@Daniel-deMerrivale
6 ай бұрын
Quick answer to the question posed - absolutely no!! Premium bonds are a bad investment unless you are very wealthy in comparison to most of us, with a lot of money to spare and nowhere else to put it. You need to have the ability to buy these in large block sums and to take the risk inflation does not eat the value away. I bought a Premium Bond in 1968.My wife bought three or four in 1975. We bought a further 100 in the early 1990’s and eventually cashed them in. As said by others here, it’s pointless, a rich persons lotto.
@abbie-b6
6 ай бұрын
I really don't understand why people like premium bonds, especially those who are normal tax rate earners, it's bonkers. My Uncle was trying to sell me on it last weekend and I just think people are looking at it very emotionally (i.e. it's exciting to win a hundred quid every now and again over a 'boring' return on the ISA / stocks ).
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