premium bonds.

[KungFooBob]

In a nutshell (I don't think this is news to anyone), with average luck, you'll make 2%.

The best easy access is 2.5%

The best fixed for 2-5 years is >5%.

The only advantage of PB's is that you don't pay any tax if you make more than a grand a year on them.

I think we're going to split them.

A third in a fixed saver for her, same for me and the final third can stay in the PB's, that way we should make a couple of grand a year without having to pay any tax.

[Asian Boss]

There is massive forced liquidation of risk parity. Bridgewater has faced massive redemptions from Saudi and others and that is what is caused some of the more dramatic moves last week (gold, bonds, equities and FX). AQR and 2 Sigma are in the same boat. All of them run leverage in the strategy, sometimes significant. Sovereign wealth is running for the hills, as are others.

[Taipan]

I'm superstitious though and I knew I'd make money whilst most of everyone else got rinsed with inflation and higher debt, and I thought karma might bite me, so I told anyone that would listen what I thought I knew, including on here - but that thread didn't end so well either
I tried though.

Whenever I need financial advice the first place I always look is a random bloke on a motorcycle forum.

Random I maybe, but whiskey casks is where its at!

[Asian Boss]

Due to the Volker rules, now that vol has risen, we have to cut risk limits by 80% in many areas – to put it in perspective our Dollar Mex position limit has gone from 200m to 12m. Thus, just when we were supposed to prove liquidity, we have to reduce it. Our hands are tied. Even worse, we have to hedge counterparty risk with corp borrowers and that is adding to the tail spin of selling. There is no liquidity from the banks.

[Dodgy69]

Sorry, no luck this time. ☹

[Pirahna]

£25 for me and nothing for wifey, I think that's the end for Premium Bonds. We're both maxed out and even an instant access account would have returned around £80 each. I think I'll move the money into my Chase account until I work out what to do with it.

[KungFooBob]

£25.

Last draw for us too, we could be making £125 a month in a savings account.

[Mr. Dazzle]

Last draw for us too, we could be making £125 a month in a savings account.

And that's just the first month! You'll make more next month.

[Pirahna]

Both Premium Bond accounts closed, the money will be in our current account within 3 days. A quick look on Martin's Money Saving shows Atom Bank are giving 4.35%. Our £100k Premium Bond investment would have returned £362.50 this month, not £25. I'll have a look around and come up with something better.

There's an easy interest calculator here: https://www.bankofengland.co.uk/educati ... calculator

[Dodgy69]

Maybe we need a "best savings account " thread.

[Mr. Dazzle]

We're putting a chunk of cash in 'normal' savings too now. It was in equities, but for a guaranteed 4.5% AER I'm happy to put it away and not see if for a couple of years!

One could be forgiven for thinking that the idea behind base interest rate changes is to get more people saving

[gremlin]

Do bear in mind the prize fund for Premium Bonds is directly correlated to Base rate, so when Base goes up, so does the volume and value of the prizes.

[Pirahna]

Do bear in mind the prize fund for Premium Bonds is directly correlated to Base rate, so when Base goes up, so does the volume and value of the prizes.

I know that. Over the last 6 months my £50k has returned 1.2%, wifey's £50k has returned 1.5%, well below what's possible if the money was parked somewhere else.

[Yorick]

Plenty of fixed 4% deals for 1 year.

Don't go longer as the rates will be peaking end of next year.

[Mr. Dazzle]

If base rates are expected to peak next year you'd expect the long term saving rates, those locked in for >1 year that is, to have already peaked?

[Taipan]

[Taipan]

Anyone got an actual link to a product that i can put my PB money in for a year with a minimum of 4% then?

[Mr. Dazzle]

Here are several!

https://www.money.co.uk/savings-account ... bond-deals

[Taipan]

Never heard of most of them. Thats what worries me. Is your money safe with someone like investec or raisen?

[Mr. Dazzle]

They're FSCS regulated/protected so you're safe up to £85k just like a 'normal' bank.

You also often find these sorts of rates and accounts aren't available with High Street banks. Lloyd's, HSBC etc. could no doubt offer them if they wanted, make up your own mind why they don't.