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Is it time to dump your Premium Bonds?

It promised a unique safe haven, but… 

Premium Bonds are operated by NS&I which is treasury-owned so your capital is as safe as it gets. This safety used to be a special charm, but these days all UK regulated savings accounts are protected up to £75,000 per person, per institution, by the Financial Services Compensation Scheme. However, the maximum you can put in premium bonds is £50,000 – so the safety boon isn’t as big.

Premium Bonds are certainly not as good as they used to be, but ultimately it’s only worth re-allocating your cash if there’s something better out there.

So unless you’re extremely lucky, premium bonds earn far less than the top savings and most investments – the safest bet is to get rid of them.

The key to managing your wealth is to diversify and, if you want the potential for growth in this low interest rate environment, then the first option is to look at investing. Get in touch with Blacktower to find out more. 

 

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

FCA and TPR Join Forces to Improve Outcomes

This month the two main pensions regulatory bodies, the Financial Conduct Authority (FCA) and The Pensions Regulator (TPR), announced that they have joined forces to improve the prospects of retirees and pension savers. Previously, the two have worked together in an attempt to protect savers from pension scams.

The fact that the two regulators are thinking big by developing a strategy for the next five to ten years is good news as it gives some time for objectives to be fully understood and reached, and the published strategy will hopefully lead to greater numbers of savers having sufficient income once they reach retirement.

Initially, the two regulators oversaw a comprehensive review of the consumer pensions experience – particularly regarding how and why savers make the decisions they do. The published strategy now seeks to encourage pension providers to increase value for money, with an enforcement of standards and principles amongst the pension industry a key component of this aim.

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Expats’ EHIC-Style Rights Guarantee a Step Closer

Blood pressure monitorBritish expats abroad have taken heart from the announcement that the government has introduced a bill to replicate the European Health Insurance Card (EHIC), meaning that expats should continue to receive healthcare abroad even in the event of a no-deal Brexit.

As it stands, EHIC entitles Britons to state health care when in an EU or EEA country (European Economic Area) for treatments that are “medically necessary” as well as those for pre-existing conditions. Furthermore, as long as a person has not travelled abroad with the specific intention of giving birth there, they are also entitled to routine maternity care.

Although the Healthcare (International Arrangements) Bill does not replace EHIC it clears a pathway to a fast-track bill that will “provide the powers that are needed” in the event of British citizens’ healthcare rights being threatened by Brexit. It also means that, contrary to the fears of many expats, affording private medical insurance may not be an issue they will need to discuss with their expat financial services provider.

Read More

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