Brock;247800 wrote:We use NS&I Premium Bonds for non ISA sheltered cash
2.20% of the prize fund paid out tax free, max holding £50k,
Access to your cash quickly, just worth remembering you’re not in the draw for the first part month
https://www.nsandi.com/products/premium-bonds Likewise, "tax free" is becoming increasingly attractive.
A note of caution regarding the 2.2% figure though, according to
https://www.nsandi.com/g...onthly-prize-allocation
90% of the prize fund goes towards the small (£25, £50 & £100) prizes, the remaining 10% pays for all the bigger prizes.
If you look at the actual number of prizes awarded (using the Nov '22 figures), only 18179 of 4957066 prizes awarded were from the top 10%, that is 0.367% or roughly 1 in 273 of the prizes.
It would seem that it is relatively unlikely to get one of these larger prizes hence the return on "parked" money is effectively 90% of 2.2% or very roughly 2% (equivalent to 2.5% for basic rate tax payers which just happens to be what Marcus currently pays). Hopefully the 2.2% figure is due a significant uplift before the next draw.
OM