Why you should forget Premium Bonds

Premium Bonds are a national institution. They're safe, solid, and give you the chance of scooping a big jackpot prize. But they may not be as attractive as many people think. Here, Ruth Jackson looks at the ins and outs of Britain's favourite investment - and suggests a more lucrative alternative.

Gambling and safety don't tend to go together. But Premium Bonds have done very well combining the two.

Investors are lured in by the prospect of winning prizes with a one million pound maximum jackpot in place of regular interest, safe in the knowledge that their capital is invested with the government. It's a risk-free bit of fun, they think.

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Ruth Jackson-Kirby

Ruth Jackson-Kirby is a freelance personal finance journalist with 17 years’ experience, writing about everything from savings accounts and credit cards to pensions, property and pet insurance.

Ruth started her career at MoneyWeek after graduating with an MA from the University of St Andrews, and she continues to contribute regular articles to our personal finance section. After leaving MoneyWeek she went on to become deputy editor of Moneywise before becoming a freelance journalist.

Ruth writes regularly for national publications including The Sunday Times, The Times, The Mail on Sunday and Good Housekeeping, among many other titles both online and offline.