Premium Bonds

Premium Bonds

Premium Bonds – We recently received an enquiry from an accountant:

Since short term deposits do not attract a great deal of interest and there is only security of capital on up to each £85,000 deposited with each bank – could we recommend anywhere to place short term cash?

One area that might be considered is investing in Premium Bonds.

The maximum that one can put in has been increased to £50,000 from 1st June 2015.

The attraction of premium bonds is they have the potential to win more in prizes than you might gain in interest, and that the prizes are tax free. This makes them a consideration for higher and additional rate tax payers.

“Your karma should be good, and everything else will follow. Your good karma will always win over your bad luck.” Rohit Shetty

They are not suitable if you are seeking regular income. In addition you have to be invested one month before you qualify for a prize draw.

Each month there are a number of small, medium and high value prizes allocated, plus two £1M prizes.

Good Luck !

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A pension is a long-term investment that typically cannot be accessed until age 55 (57 from April 2028). The level of pension benefits offered could change depending on the value of your investments (and any income they may generate).

The interest rates in effect at the time you begin receiving benefits may also have an impact on your pension income. The tax consequences of pension withdrawals will depend on your unique situation. In later Finance Acts, tax rates, tax bases, and tax relief may change.

The opinions expressed by Ray Best are meant to inform and educate. Before making any investment decisions always take advice that is pertinent to your investment personality and financial situation.

You are aware that past performance will not necessarily be repeated in the future, but you should be aware that persistent poor performance invariably will.

The value of an investment and the income from it could go down as well as up.

The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.

UnaVida Wealth Management Ltd. is directly authorised and regulated by the Financial Conduct Authority (440577).

The guidance in this website is primarily aimed at a UK audience and is subject to regulation by the Financial Conduct Authority (FCA).

The Financial Conduct Authority does not regulate tax planning, estate planning, or wills and any form of legal documentation.