Savers warned Premium Bonds £1million jackpot ‘not a good investment’ despite rate rise | Personal Finance | Finance

Spread the love

Despite this change to the prize fund rate, some experts are unconvinced about the benefits of Premium Bonds as a tool for making money.

Ben Rogers, a chartered financial planner at Equilibrium Financial Planning, discussed why he considered NS&I’s signature product “not a good investment”.

Mr Rogers explained: “While they can theoretically have a place as a tool to hold some money for the short-term, for example to pay a looming bill, in almost all cases people could be better off putting this money in an easy access savings account.

“Premium Bonds are not able to keep up with inflation and cash invested here will not grow which means unless you win a significant prize, your money will be losing value in real terms, particularly with the current inflation rate.”

Leave a Comment