Money Saving Expert founder Martin Lewis told This Morning viewers that unless you’re “very lucky”, Britons are better off putting their savings into a savings account. He also recommended which savings accounts were best.
NS&I Premium Bonds savings accounts have been popular since the 1950s but some experts say it’s time for Britons to end their love affair with them.
A caller named Patricia called This Morning to ask: “Is now the time to get rid of Premium Bonds?
She told presenters Philip Schofield and Rochelle Humes: “I’ve got the maximum of £50,000 and have only won £50 in the last three months.
In response, financial journalist Martin Lewis said: “The Premium Bond prize fund rate is currently one percent.”
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“If you have average luck – in fact you’d have to be very, very lucky right now for Premium Bonds to beat the best savings accounts on the market.
“You’d have to have very, very good luck.
“Of course there’s always the chance you’ll win a million – but for most people – unless you pay tax on savings, which most people don’t have to anymore, you’re better off with savings.”
NS&I’s Premium Bonds are popular with some Britons because they offer the chance to win a jackpot prize of £1million every month.
NS&I Premium Bonds offer savers a number of benefits including:
What are the odds of winning?
34,500 to 1 (for every £1 Bond)
What’s the interest rate?
1.00% (annual prize fund rate)
Will you pay tax?
No. All prizes are tax-free
What’s the minimum people can pay in?
What’s the maximum savers can pay in?