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Brock
Posted: 14 November 2022 14:32:47(UTC)
#13

Joined: 08/08/2017(UTC)
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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
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Martina on 14/11/2022(UTC)
OmegaMale
Posted: 14 November 2022 16:49:35(UTC)
#15

Joined: 02/07/2020(UTC)
Posts: 535

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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
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Martina on 14/11/2022(UTC), Guest on 15/11/2022(UTC)
Martina
Posted: 14 November 2022 17:01:30(UTC)
#14

Joined: 28/11/2012(UTC)
Posts: 277
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


I quite like both NS&I products I'm presently with.

10% NS&I I/L Bonds.
20% NS&I P Bonds.
27% Cash ISA. Matures in a fortnight, I'll have questions shortly of myself what I'll next need of this.
5% High Street savings Bond at 4.75% for three years.
38% S&S ISA (3 IT/5 UT).
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Andrew1952
Posted: 16 November 2022 16:45:30(UTC)
#4

Joined: 06/07/2019(UTC)
Posts: 538
Harland Kearney;247497 wrote:
Ed A;247063 wrote:
Do we have anything like treasury bills or short-term government bonds with good interest? Something that matures within next 3-6 months...


There is HL Active Savings with 4.3% deposit for 9 months fixed.

But yes, the real yield is of course negative, but show me something with a positive yield that gives the Government protection and guaranteed yield (near enough) with no capital risk.
But I feel like this type of instrument is to address people who seek the capital returned to them for something larger purchase shortly after maturity. It certainly has its place & I use these for situations like this recently.



But presumably only for cash in an investment account.
ISA cash can be taken out but must be replaced before the end of the same tax year
(Could somone confirm this ?).

Cash in a SIPP cannot be withdrawn unless you are over 55 and go down the
crystallisation route. (Confirmation needed again).

hence ISA's and SIPPS need to invest cash in a tradeable ?cash fund or appropriate
gilt fund
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Tim D
Posted: 16 November 2022 17:24:15(UTC)
#5

Joined: 07/06/2017(UTC)
Posts: 8,883
Andrew1952;248078 wrote:
ISA cash can be taken out but must be replaced before the end of the same tax year
(Could somone confirm this ?).


Careful. That's only for "flexible ISAs", and not all ISAs are flexible as there's additional admin and reporting load for the provider and many (most?) don't/won't do it.

IC article earlier this year had a bit of a patchy review of which providers do and don't and why:
https://www.investorschr...h-platforms-offer-them/
or https://archive.ph/OwU6Z
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Harry Trout
Posted: 16 November 2022 17:38:35(UTC)
#16

Joined: 08/06/2014(UTC)
Posts: 1,012
Ed A;247063 wrote:
Do we have anything like treasury bills or short-term government bonds with good interest? Something that matures within next 3-6 months...

I ran my calculator over the 0.75% 22 July 2023 gilt at midday today and it was showing an annualised IRR of 2.58% as below:

220723 Gilt

Assumes a purchase through Hargreaves Lansdown which is the platform we use.

Please do your own research - the calculator is something I created for my own use and gilt yields are very volatile at the moment.
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