With the Bank of England set to further increase the base interest rate, many savers will be wondering if they could get a more certain return on their savings with a conventional bank or building society account.
Gary Hemming, the commercial lending director at ABC Finance, warned about the “big risk” to Premium Bond holders of not winning any prizes.
He said: “Premium Bonds are a safe way to invest, but you run a big risk of not receiving any return on your money – especially if you hold less than £5,000.
“While you can win big and benefit from excellent returns, the reality is that this is unlikely and with average returns of 2.2 percent, you can get stronger returns from regular savings accounts currently.
With the Bank of England set to further increase the base interest rate, many savers will be wondering if they could get a more certain return on their savings with a conventional bank or building society account.
Gary Hemming, the commercial lending director at ABC Finance, warned about the “big risk” to Premium Bond holders of not winning any prizes.
He said: “Premium Bonds are a safe way to invest, but you run a big risk of not receiving any return on your money – especially if you hold less than £5,000.
“While you can win big and benefit from excellent returns, the reality is that this is unlikely and with average returns of 2.2 percent, you can get stronger returns from regular savings accounts currently.
“With inflation higher than even the highest interest savings accounts, the real value of your savings will drop over time.
“It’s important that you mitigate this by locking in valuable interest at the best rate you can get to protect the buying power of your money as much as possible.”