Money Saving Expert Martin Lewis has spoken out about whether Premium Bonds are actually worth investing in.
National Savings and Investments (NS&I) Premium Bonds allow investors to buy bonds, with a minimum of £25, and have the chance of winning money in return.
With a max prize of £1 million, many use Premium Bonds accounts as a way to save money whilst being in with a chance to win.
However, now Lewis has shared his verdict on whether the NS&I products are really worth investing in.
Martin Lewis shares if Premium Bonds are 'worth it'
Speaking on ITV’s This Morning, Lewis was asked by viewer Rebecca: "Are premium bonds worth considering?"
Responding to the question from The Martin Lewis Money Show studio, the presenter said: "For some people. It’s quite complicated."
Adding: “The Premium Bonds prize rate is 3.80%, which is less than the top savings accounts.
"But actually, if you have typical luck, which is based on the median average, you will earn less than 4.65%."
Lewis then explained how for two to win big, many have to lose: “Think about it this way, for every person that wins £1 million, a lot of people have to win nothing, which is why on average, with typical luck, you get less than 4.65%.
"The maximum is £50,000. So as a general rule of thumb, if you are a higher or top-rate taxpayer, you have enough savings that you pay interest on it, and you’re looking at putting a large amount in, they can be a pretty good bet.
Recommended Reading
- Millions of Premium Bonds holders warned ahead of change
- Premium Bond Winners April 2025: Who won in the NS&I's
- NS&I Premium Bonds warning for anyone who has under £10,000
"If you’re looking at putting a few hundred quid in and you don’t pay tax on your savings, you would be a lot better off with a normal savings account where you’re guaranteed to get the interest."
Although the Money Saving Expert has shared his thoughts on Premium Bonds, he does confirm that people’s money is safe with NS&I, adding: "It’s a savings account where the interest is dictated by a lottery."
Lewis added that anyone with investments in Premium Bonds can take their money out safely: "Yes, you can take your money out - but you can take your money out of any easy access account."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel
You must verify your phone number before you can comment.
Please enter your phone number below, and a verification code will be sent to you by text message.
Please enter the six-digit verification code sent to you by SMS.
Your verification code has been sent a second time to the mobile phone number you provided.
Your verification code has been sent a third time to the mobile phone number you provided.
You have requested your verification code too many times. Please try again later.
Didn’t receive a code? Send it againThe code you entered has not been recognised.
Please try again
You have failed to enter a correct code after three attempts.
Please try again later.
Your phone number has been verified.
Your phone number has been stored with your account details. We will never use it for anything other than verifying that you are the legitimate owner of this account.