Money Talk
Consumer expert Sue Hayward’s savvy finance tips and advice
It’s a sad day in the savings world when a “chart topping” account, paying just a smidge over 1%, shuts its doors after a rush of new savers.
Savings rates have fallen to beyond pitiful levels since the Bank of England slashed the base rate to 0.1%. So naturally we’re desperate to snatch even a whiff of a return on our money.
The Marcus online savings account pays 1.05% but is no longer open to new savers, and you’d need £5,000 in there to earn just £50 a year. But with the average easy access account paying 0.3%, crazy as it sounds, that 1.05% was a more lucrative option.
My money’s on Premium Bonds as I think they’re well worth a punt in the current climate. OK, big prizes aren’t guaranteed, but for once I’m happy to risk losing a scraping of interest for the chance to win big.
I’m no gambler (unless you count my love of seaside pier amusements or one night of fun at the roulette table in Vegas), but with Premium Bonds, your money’s safe. You can get your cash back when you want it, plus the big bonus is the chance to win a million every month. In fact, the only gamble is throwing away the pittance of interest you could earn on savings in exchange for the chance to win big bucks.
You can buy Premium Bonds from £25 up to a limit of £50,000, and prizes start from £25 (with over 3,000 of these each month), up to two prizes of a million pounds – and winnings are all tax free!
◆ Based on prize-winning potential the average return on premium bonds is 1.4%. However it’s no guarantee of success.
◆ Average rate on easy access savings accounts is just 0.3%.
◆ You can withdraw your money when you want or put in more.
◆ Find out more and buy Premium Bonds online at WWW.NSANDI.COM