Investment & Investing

The expected return on premium bonds is ~1.25 gross.

There are kids' saver accounts that have higher returns, pay gross interest, and are also risk-free, insofar as they would be FSCS protected.

Stick it a junior isa..choose an index fund and it will produces regular dividends and appreciate in price over the long term
Key is to make sure fees are low.
Warren Buffett school of thinking.
I would only do surplus in premium bonds the return and chance of winning is too poor.

@Doctor_Cake sorted our kids junior isa

She might have suggestions.

I once had about £20k in Premium Bonds. That was all my savings. I won a few times but only £25 a time. Overall effective interest rate was pretty poor. Its not great. I keep £100 in now, just in case. Thats now £125 thanks to another win. I've also had £5 worth since I was born (late seventies - its never won anything).

The rest is now in Index Trackers and similar. I've done the same for my son.

Cracking return last year!

Yep went through similar situation.. the only thing that keeps you held into premium bond is a chance of the big win...which in reality is very small, so much so that you'd be better off spending the interest from a decent savings account on scratch cards and lottery tickets.
On the other hand long term drip feeding into a low cost index track yields amazing results given the miracle of reinvestment and compound returns.

There's a premium bond calculator here https://www.moneysavingexpert.com/savings/premium-bonds-calculator/ which gives an idea of what the likely returns are.

Word is bond!

Is anyone using Trading 212? Its like freetrade but much better (free instant trades, stops and limits, just more in depth on all fronts). Not dabbled with CFDs yet but I'm doing ok out of the share dealing app.

Referral gives you (and me) a free share (up to £100, allegedly):
http://www.trading212.com/invite/4K7myv2

Saving for house deposit, chunk of cash, where to put it to earn highest interest (leaving it as cash, ie. no shares or any weird shit)?

Help to buy ISA? If first time buyer...

Ta, but that won't work.

Premium bonds. Could get lucky ya know?

Only half joking. Guessing that returns on large amounts of cash in retail banks are utter shite, plus the faff of having to limit the deposit sizes to whatever the FSCS limit is. Whereas bung it all in PBs, no worries.

limit the deposit sizes to whatever the FSCS limit is

Is there not such a thing as a term deposit over here where you bung in a chunk of cash and get paid over the normal rates for it? No idea about bonds other than 007.

We have a junior ISA with Charles Stanley Direct for the cash one of ours got given.
It is performing quite well.

Anyone risked their money in one of these private lender thingies?
https://www.ratesetter.com/

Is there not such a thing as a term deposit over here where you bung
in a chunk of cash and get paid over the normal rates for it?

There is indeed.

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#fixedsavings

OakNorth 1.76% On maturity £1/£500,000 Online Full

Say, £880 back if you lock up £50k for 12 months.

No wonder people transport drugs.

I have a small amount in there and previously had some in Funding Circle (business loans) also.

Ratesetter the risk involved is negligible has differing interest rates based on the length of investment. Funding Circle had significantly better returns (after losses) but I could have just been lucky (this was before they changed their loan system).

Yeah, it's too much cash to risk on these schemes I think but I might use these if I stumble on a couple of grand or something.
https://www.financialthing.com/funding-circle-review/

There's a maximum 'investment' of £50k, which is below the FSCS limit which is mostly £80k although some seem to be increasing £85k.

I have some but don't believe they are the best place for the money, just too lazy to move it.

There's a maximum 'investment' of £50k

Oh. Poo.

I use ratesetter and have had a positive experience and return, but I limit to a relatively small % as it's not protected etc etc. The ISA wrapper is particularly useful.

Give me a shout if you want a referral code to earn you (and me) some "free" money

It's unlikely but if I do use it I'll remember to get referals in place

I have a bit in ratesetter. I joined when there was an intro offer so got some free money. returns have been meh.
It's worth noting, none of these p2p money lending services were around in the last recession so none have been tested under those circumstances - ie how will they manage a lot of loan defaults etc.