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Savings and Investments thread
Comments
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Small caps is where I’ve parked my money, biggest difference in price with large caps in something like 35 years. Obviously no big tech in there and it’s much higher risk so certainly not suitable for Prague. But seems a decent place to be exposed to any ai boom and equally keep safe from the ai bubble popping for companies like nvidia.0
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Whilst I expect there could be a correction at some point where it comes to tech stock, it would hopefully differ in many ways to what happened with the dot com crash 25 years ago.
The companies propping up the tech/AI market are far more stable businesses now than they were in the late 90s/early 00s, and they now have decades of revenue performance to demonstrate it.1 -
Appreciate the response.PragueAddick said:
The key thing here is my age (71) . If I were 51 I would not be doing this, not least because I wouldn’t be able to touch my SIPP whereas now I want to start using some of the hard-earned cash.valleynick66 said:
Can I ask what your rationale is for this?PragueAddick said:
ok, I missed the “SIPP” context. I have a SIPP but as a tax NR it doesn’t fully function as such. I am busy de-risking it right now by gently cashing out profits from any funds which have tech stuff. MMFs are not, as you say, risk-free but they are a lot less risky right now than many of the funds I am in.bobmunro said:PragueAddick said:
You should be doing better than that in “cash”. Still 4% + in money market funds, and just about 4% for 1 year bonds with reputable British- based banks ( and HSBC😂)RRob7Lee said:
I stopped buying gold about 12 months ago, I also sold what I had in a fund back in March, but still hold a fair amount of physical gold. Not sure I'd buy more at this stage but that's as much about already holding quite a lot, just buy a few gold sovereigns if you want to enter the market, or a fund if you have space in ISA/SIPP etc.Huskaris said:Does anyone else find it really interesting/surprising/worrying that we are in a world where gold is up 47% YTD, and the S&P is up 14%?
It feels like everyone is terrified of missing out so pumping the S&P whilst being absolutely terrified of what is coming, so also pumping gold!
I really wish I'd bought gold earlier this year, I might be about to get my hands on a little bit of cash and still think it would be a good purchase!That said I've also liquidated around 2/3rd of my SIPP to lock in the growth since March, currently sitting in cash, which does earn last time I looked 2.5% (having slowly dropped this year from 3.25%) so not the end of the world.
There are a limited number of SIPP'able deposit account providers and very few, if any, would pay those sorts of rates on deposits. You may be able to get a bit more on MMFs but they do carry risk, although pretty low in normal times (which these are not!).
Is it because you judge the AI/Tech bubble is set to burst or just the right time to bank the profit?
My curiosity, following these conversations where investors switch funds , is what makes people lose a bit of faith in the judgement of the fund managers.The US generally feels like it’s outperforming despite everything Trump does and should surely stall at some point but who knows when.I do think it has developed into a bubble, especially when someone like James Anderson, who remains a big believer in Nvidia, expresses his concerns about it. The other factor that has bothered me is that most of us who are mainly in funds rather than direct shares, hold far more tech than we realise in our broader based funds.Your last point does tend a little to a lack of faith (to a degree) in the fund managers ie exposure to tech.As ever spotting when a fund is starting to lose its sparkle is a hard thing to do.0 -
£25 on 2x max😂0
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A few fund management groups that I deal with have been reducing their exposure to US stocks & favouring UK, Europe & Emerging Mkts. Not by much, maybe a few % here & there, but it's been happening since the start of the year.valleynick66 said:
Appreciate the response.PragueAddick said:
The key thing here is my age (71) . If I were 51 I would not be doing this, not least because I wouldn’t be able to touch my SIPP whereas now I want to start using some of the hard-earned cash.valleynick66 said:
Can I ask what your rationale is for this?PragueAddick said:
ok, I missed the “SIPP” context. I have a SIPP but as a tax NR it doesn’t fully function as such. I am busy de-risking it right now by gently cashing out profits from any funds which have tech stuff. MMFs are not, as you say, risk-free but they are a lot less risky right now than many of the funds I am in.bobmunro said:PragueAddick said:
You should be doing better than that in “cash”. Still 4% + in money market funds, and just about 4% for 1 year bonds with reputable British- based banks ( and HSBC😂)RRob7Lee said:
I stopped buying gold about 12 months ago, I also sold what I had in a fund back in March, but still hold a fair amount of physical gold. Not sure I'd buy more at this stage but that's as much about already holding quite a lot, just buy a few gold sovereigns if you want to enter the market, or a fund if you have space in ISA/SIPP etc.Huskaris said:Does anyone else find it really interesting/surprising/worrying that we are in a world where gold is up 47% YTD, and the S&P is up 14%?
It feels like everyone is terrified of missing out so pumping the S&P whilst being absolutely terrified of what is coming, so also pumping gold!
I really wish I'd bought gold earlier this year, I might be about to get my hands on a little bit of cash and still think it would be a good purchase!That said I've also liquidated around 2/3rd of my SIPP to lock in the growth since March, currently sitting in cash, which does earn last time I looked 2.5% (having slowly dropped this year from 3.25%) so not the end of the world.
There are a limited number of SIPP'able deposit account providers and very few, if any, would pay those sorts of rates on deposits. You may be able to get a bit more on MMFs but they do carry risk, although pretty low in normal times (which these are not!).
Is it because you judge the AI/Tech bubble is set to burst or just the right time to bank the profit?
My curiosity, following these conversations where investors switch funds , is what makes people lose a bit of faith in the judgement of the fund managers.The US generally feels like it’s outperforming despite everything Trump does and should surely stall at some point but who knows when.I do think it has developed into a bubble, especially when someone like James Anderson, who remains a big believer in Nvidia, expresses his concerns about it. The other factor that has bothered me is that most of us who are mainly in funds rather than direct shares, hold far more tech than we realise in our broader based funds.Your last point does tend a little to a lack of faith (to a degree) in the fund managers ie exposure to tech.As ever spotting when a fund is starting to lose its sparkle is a hard thing to do.1 -
£150 on max0
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Another opening bell with us equities at all time high.0
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FTSE100 hit an all time high yesterday as well.Diebythesword said:Another opening bell with us equities at all time high.
All must be well in the world.1 -
£125 on joint 92,5k0
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Well the problem is that many funds are passively managed. Some deliberately so; if you have a US or even a global tracker, you own a lot of the big tech. Some are supposed to be “active”, you look under the bonnet and find a car manufacturer run by a nut-job. Holding such shares in the last few years has helped the fund manager meet KPI targets,valleynick66 said:
Appreciate the response.PragueAddick said:
The key thing here is my age (71) . If I were 51 I would not be doing this, not least because I wouldn’t be able to touch my SIPP whereas now I want to start using some of the hard-earned cash.valleynick66 said:
Can I ask what your rationale is for this?PragueAddick said:
ok, I missed the “SIPP” context. I have a SIPP but as a tax NR it doesn’t fully function as such. I am busy de-risking it right now by gently cashing out profits from any funds which have tech stuff. MMFs are not, as you say, risk-free but they are a lot less risky right now than many of the funds I am in.bobmunro said:PragueAddick said:
You should be doing better than that in “cash”. Still 4% + in money market funds, and just about 4% for 1 year bonds with reputable British- based banks ( and HSBC😂)RRob7Lee said:
I stopped buying gold about 12 months ago, I also sold what I had in a fund back in March, but still hold a fair amount of physical gold. Not sure I'd buy more at this stage but that's as much about already holding quite a lot, just buy a few gold sovereigns if you want to enter the market, or a fund if you have space in ISA/SIPP etc.Huskaris said:Does anyone else find it really interesting/surprising/worrying that we are in a world where gold is up 47% YTD, and the S&P is up 14%?
It feels like everyone is terrified of missing out so pumping the S&P whilst being absolutely terrified of what is coming, so also pumping gold!
I really wish I'd bought gold earlier this year, I might be about to get my hands on a little bit of cash and still think it would be a good purchase!That said I've also liquidated around 2/3rd of my SIPP to lock in the growth since March, currently sitting in cash, which does earn last time I looked 2.5% (having slowly dropped this year from 3.25%) so not the end of the world.
There are a limited number of SIPP'able deposit account providers and very few, if any, would pay those sorts of rates on deposits. You may be able to get a bit more on MMFs but they do carry risk, although pretty low in normal times (which these are not!).
Is it because you judge the AI/Tech bubble is set to burst or just the right time to bank the profit?
My curiosity, following these conversations where investors switch funds , is what makes people lose a bit of faith in the judgement of the fund managers.The US generally feels like it’s outperforming despite everything Trump does and should surely stall at some point but who knows when.I do think it has developed into a bubble, especially when someone like James Anderson, who remains a big believer in Nvidia, expresses his concerns about it. The other factor that has bothered me is that most of us who are mainly in funds rather than direct shares, hold far more tech than we realise in our broader based funds.Your last point does tend a little to a lack of faith (to a degree) in the fund managers ie exposure to tech.As ever spotting when a fund is starting to lose its sparkle is a hard thing to do.
so they all do it.Of course it makes sense to own some shares in the these companies, its just that in the last year or so I realised that I owned far more than I would wish to.0 -
Sponsored links:
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6 prizes for Margaret totalling £300. 2 x £25 for me. Both on max holdings.0
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My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated
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She is deliberately not saying.CheshireAddick said:My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated.
I think it suits her to have the large withdrawals boosting the economy if it doesn't go straight into alternative savings.0 -
Thanks for your thoughts on this 👍Covered End said:
She is deliberately not saying.CheshireAddick said:My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated.
I think it suits her to have the large withdrawals boosting the economy if it doesn't go straight into alternative savings.0 -
I withdrew my 25% tax free lump sum last October but I had a purpose for it and in the mean time I had it in savings or investments not subject to tax.CheshireAddick said:
Thanks for your thoughts on this 👍Covered End said:
She is deliberately not saying.CheshireAddick said:My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated.
I think it suits her to have the large withdrawals boosting the economy if it doesn't go straight into alternative savings.
If you can do something as good with it then I say go for it, but there's not much point if you're going to put it somewhere where the returns are worse and also subject to tax as well.1 -
Planning to use it for some quality holidays over the next couple of years as we're not relying it as part of our pension pots.Covered End said:
I withdrew my 25% tax free lump sum last October but I had a purpose for it and in the mean time I had it in savings or investments not subject to tax.CheshireAddick said:
Thanks for your thoughts on this 👍Covered End said:
She is deliberately not saying.CheshireAddick said:My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated.
I think it suits her to have the large withdrawals boosting the economy if it doesn't go straight into alternative savings.
If you can do something as good with it then I say go for it, but there's not much point if you're going to put it somewhere where the returns are worst and also subject to tax as well.3 -
I put "ours" in S&S ISAs and savings accounts in the wife's name, as she has no income so can earn £12,570 tax free allowance + £5,000 Starting rate for savings = £17,570 tax free (can't recall if she gets the extra £1,000 savings allowance as well.CheshireAddick said:
Planning to use it for some quality holidays over the next couple of years as we're not relying it as part of our pension pots.Covered End said:
I withdrew my 25% tax free lump sum last October but I had a purpose for it and in the mean time I had it in savings or investments not subject to tax.CheshireAddick said:
Thanks for your thoughts on this 👍Covered End said:
She is deliberately not saying.CheshireAddick said:My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated.
I think it suits her to have the large withdrawals boosting the economy if it doesn't go straight into alternative savings.
If you can do something as good with it then I say go for it, but there's not much point if you're going to put it somewhere where the returns are worst and also subject to tax as well.
Then you have £50K each maximum holdings in PSBs no tax to pay.1 -
I've not heard anything & I really dont think she will change the 25% TFC.CheshireAddick said:My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated.
And even if she did, it would not be immediate. At the very worse case it would be from the next tax year, ie 6th April 2026. And again, if this did happen there would probably be some form of protection put in place. IE, if you had a pension pot of £600k on Nov 26th and could take £150k as a tax free lump sum, then that £150k would be protected.
As an example......the Pensions & IHT Bill has not even got to the white paper stage & isn't due to come into force until April 2027.
Any major change to Pensions will not be immediate, and I stake my professional reputation on it !3 -
And where would it be before taking those holidays?. Unless in ISA's then you're better off leaving it where it is until you need it.CheshireAddick said:
Planning to use it for some quality holidays over the next couple of years as we're not relying it as part of our pension pots.Covered End said:
I withdrew my 25% tax free lump sum last October but I had a purpose for it and in the mean time I had it in savings or investments not subject to tax.CheshireAddick said:
Thanks for your thoughts on this 👍Covered End said:
She is deliberately not saying.CheshireAddick said:My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated.
I think it suits her to have the large withdrawals boosting the economy if it doesn't go straight into alternative savings.
If you can do something as good with it then I say go for it, but there's not much point if you're going to put it somewhere where the returns are worst and also subject to tax as well.1 -
Thanks for the suggestions Covered End, much appreciatedCovered End said:
I put "ours" in S&S ISAs and savings accounts in the wife's name, as she has no income so can earn £12,570 tax free allowance + £5,000 Starting rate for savings = £17,570 tax free (can't recall if she gets the extra £1,000 savings allowance as well.CheshireAddick said:
Planning to use it for some quality holidays over the next couple of years as we're not relying it as part of our pension pots.Covered End said:
I withdrew my 25% tax free lump sum last October but I had a purpose for it and in the mean time I had it in savings or investments not subject to tax.CheshireAddick said:
Thanks for your thoughts on this 👍Covered End said:
She is deliberately not saying.CheshireAddick said:My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated.
I think it suits her to have the large withdrawals boosting the economy if it doesn't go straight into alternative savings.
If you can do something as good with it then I say go for it, but there's not much point if you're going to put it somewhere where the returns are worst and also subject to tax as well.
Then you have £50K each maximum holdings in PSBs no tax to pay.1 -
Sponsored links:
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Looking at the returns people have made in PB's this month it may be time to re-think this strategy. PB's are for safety, not for returns.Covered End said:
I put "ours" in S&S ISAs and savings accounts in the wife's name, as she has no income so can earn £12,570 tax free allowance + £5,000 Starting rate for savings = £17,570 tax free (can't recall if she gets the extra £1,000 savings allowance as well.CheshireAddick said:
Planning to use it for some quality holidays over the next couple of years as we're not relying it as part of our pension pots.Covered End said:
I withdrew my 25% tax free lump sum last October but I had a purpose for it and in the mean time I had it in savings or investments not subject to tax.CheshireAddick said:
Thanks for your thoughts on this 👍Covered End said:
She is deliberately not saying.CheshireAddick said:My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated.
I think it suits her to have the large withdrawals boosting the economy if it doesn't go straight into alternative savings.
If you can do something as good with it then I say go for it, but there's not much point if you're going to put it somewhere where the returns are worst and also subject to tax as well.
Then you have £50K each maximum holdings in PSBs no tax to pay.
4 -
Cheers Golfaddick, I appreciate your opinion, I agree. i really can't see any changes being made to existing SIPP pots. It would be political suicide.golfaddick said:
I've not heard anything & I really dont think she will change the 25% TFC.CheshireAddick said:My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated.
And even if she did, it would not be immediate. At the very worse case it would be from the next tax year, ie 6th April 2026. And again, if this did happen there would probably be some form of protection put in place. IE, if you had a pension pot of £600k on Nov 26th and could take £150k as a tax free lump sum, then that £150k would be protected.
As an example......the Pensions & IHT Bill has not even got to the white paper stage & isn't due to come into force until April 2027.
Any major change to Pensions will not be immediate, and I stake my professional reputation on it !0 -
Agreed, but the tax free winnings are particularly attractive to higher rate tax payers and not unattractive to tax payers who would exceed the £1,000 tax free savings allowance.golfaddick said:
Looking at the returns people have made in PB's this month it may be time to re-think this strategy. PB's are for safety, not for returns.Covered End said:
I put "ours" in S&S ISAs and savings accounts in the wife's name, as she has no income so can earn £12,570 tax free allowance + £5,000 Starting rate for savings = £17,570 tax free (can't recall if she gets the extra £1,000 savings allowance as well.CheshireAddick said:
Planning to use it for some quality holidays over the next couple of years as we're not relying it as part of our pension pots.Covered End said:
I withdrew my 25% tax free lump sum last October but I had a purpose for it and in the mean time I had it in savings or investments not subject to tax.CheshireAddick said:
Thanks for your thoughts on this 👍Covered End said:
She is deliberately not saying.CheshireAddick said:My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated.
I think it suits her to have the large withdrawals boosting the economy if it doesn't go straight into alternative savings.
If you can do something as good with it then I say go for it, but there's not much point if you're going to put it somewhere where the returns are worst and also subject to tax as well.
Then you have £50K each maximum holdings in PSBs no tax to pay.0 -
But as they say....don't let the tax tail wag the investment dog.Covered End said:
Agreed, but the tax free winnings are particularly attractive to higher rate tax payers and not unattractive to tax payers who would exceed the £1,000 tax free savings allowance.golfaddick said:
Looking at the returns people have made in PB's this month it may be time to re-think this strategy. PB's are for safety, not for returns.Covered End said:
I put "ours" in S&S ISAs and savings accounts in the wife's name, as she has no income so can earn £12,570 tax free allowance + £5,000 Starting rate for savings = £17,570 tax free (can't recall if she gets the extra £1,000 savings allowance as well.CheshireAddick said:
Planning to use it for some quality holidays over the next couple of years as we're not relying it as part of our pension pots.Covered End said:
I withdrew my 25% tax free lump sum last October but I had a purpose for it and in the mean time I had it in savings or investments not subject to tax.CheshireAddick said:
Thanks for your thoughts on this 👍Covered End said:
She is deliberately not saying.CheshireAddick said:My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated.
I think it suits her to have the large withdrawals boosting the economy if it doesn't go straight into alternative savings.
If you can do something as good with it then I say go for it, but there's not much point if you're going to put it somewhere where the returns are worst and also subject to tax as well.
Then you have £50K each maximum holdings in PSBs no tax to pay.
PB's might be tax free but if they are only giving you a 2% return wouldn't it be best to get 4.5% and pay tax on it ?5 -
This is the nub isn’t it. My own opinion for what its worth is I enjoy the monthly excitement of the draw. I fully accept I'd get a better guaranteed return (maybe) elsewhere but for what I have invested I've been lucky. I do agree with you though, a higher rate of 4.5 on a 50k investment is better than what a few average been getting as you don't just need to win when you have that much plumbed in, you need a decent win each month which I'd imagine takes some of the fun outgolfaddick said:
But as they say....don't let the tax tail wag the investment dog.Covered End said:
Agreed, but the tax free winnings are particularly attractive to higher rate tax payers and not unattractive to tax payers who would exceed the £1,000 tax free savings allowance.golfaddick said:
Looking at the returns people have made in PB's this month it may be time to re-think this strategy. PB's are for safety, not for returns.Covered End said:
I put "ours" in S&S ISAs and savings accounts in the wife's name, as she has no income so can earn £12,570 tax free allowance + £5,000 Starting rate for savings = £17,570 tax free (can't recall if she gets the extra £1,000 savings allowance as well.CheshireAddick said:
Planning to use it for some quality holidays over the next couple of years as we're not relying it as part of our pension pots.Covered End said:
I withdrew my 25% tax free lump sum last October but I had a purpose for it and in the mean time I had it in savings or investments not subject to tax.CheshireAddick said:
Thanks for your thoughts on this 👍Covered End said:
She is deliberately not saying.CheshireAddick said:My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated.
I think it suits her to have the large withdrawals boosting the economy if it doesn't go straight into alternative savings.
If you can do something as good with it then I say go for it, but there's not much point if you're going to put it somewhere where the returns are worst and also subject to tax as well.
Then you have £50K each maximum holdings in PSBs no tax to pay.
PB's might be tax free but if they are only giving you a 2% return wouldn't it be best to get 4.5% and pay tax on it ?
I do about 50 a month on the euromillions and the national lottery, fully expecting not to see that again and thats mostly the case. At least with premium bonds you aren't losing your investment, it just doesn't make you anything4 -
Definitely, but PSB’s aren’t returning 2% are they?golfaddick said:
But as they say....don't let the tax tail wag the investment dog.Covered End said:
Agreed, but the tax free winnings are particularly attractive to higher rate tax payers and not unattractive to tax payers who would exceed the £1,000 tax free savings allowance.golfaddick said:
Looking at the returns people have made in PB's this month it may be time to re-think this strategy. PB's are for safety, not for returns.Covered End said:
I put "ours" in S&S ISAs and savings accounts in the wife's name, as she has no income so can earn £12,570 tax free allowance + £5,000 Starting rate for savings = £17,570 tax free (can't recall if she gets the extra £1,000 savings allowance as well.CheshireAddick said:
Planning to use it for some quality holidays over the next couple of years as we're not relying it as part of our pension pots.Covered End said:
I withdrew my 25% tax free lump sum last October but I had a purpose for it and in the mean time I had it in savings or investments not subject to tax.CheshireAddick said:
Thanks for your thoughts on this 👍Covered End said:
She is deliberately not saying.CheshireAddick said:My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated.
I think it suits her to have the large withdrawals boosting the economy if it doesn't go straight into alternative savings.
If you can do something as good with it then I say go for it, but there's not much point if you're going to put it somewhere where the returns are worst and also subject to tax as well.
Then you have £50K each maximum holdings in PSBs no tax to pay.
PB's might be tax free but if they are only giving you a 2% return wouldn't it be best to get 4.5% and pay tax on it ?
The return is 3.8% as far as I can tell.
So whilst the majority of my temporary cash savings are paying between 4.4% & 5% I have some in PSB’s for the fun.
I also adhere to the £85K limit as a fool and his money is quickly parted.
Majority is invested in SIPP & S&S ISAs.1 -
The PB return was reduced to 3.6% in August 2025. However the real point is that this heavily scewered because of a few big winners. A median investor would only see a return of something like 2.4%. However they are tax free and are reasonably accesible (in a few days).1
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Sure they are for safety but there’s always the chance you could win big. We’ve done ok so far this year, about a 4% return on our holding so not too shabby plus there’s always that hope.golfaddick said:
Looking at the returns people have made in PB's this month it may be time to re-think this strategy. PB's are for safety, not for returns.Covered End said:
I put "ours" in S&S ISAs and savings accounts in the wife's name, as she has no income so can earn £12,570 tax free allowance + £5,000 Starting rate for savings = £17,570 tax free (can't recall if she gets the extra £1,000 savings allowance as well.CheshireAddick said:
Planning to use it for some quality holidays over the next couple of years as we're not relying it as part of our pension pots.Covered End said:
I withdrew my 25% tax free lump sum last October but I had a purpose for it and in the mean time I had it in savings or investments not subject to tax.CheshireAddick said:
Thanks for your thoughts on this 👍Covered End said:
She is deliberately not saying.CheshireAddick said:My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated.
I think it suits her to have the large withdrawals boosting the economy if it doesn't go straight into alternative savings.
If you can do something as good with it then I say go for it, but there's not much point if you're going to put it somewhere where the returns are worst and also subject to tax as well.
Then you have £50K each maximum holdings in PSBs no tax to pay.2 -
Thanks, I’ve averaged @3.5 to 4% over the last year.redman said:The PB return was reduced to 3.6% in August 2025. However the real point is that this heavily scewered because of a few big winners. A median investor would only see a return of something like 2.4%. However they are tax free and are reasonably accesible (in a few days).
To do a lot better than that I’d have to exceed the £85K limit which I’ll not do just in case the government stick to their rules/word.0
