Time to ditch premium bonds?

It's staggering how many people in Britain own premium bonds, says Ruth Jackson. But are there better bets elsewhere?

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You could, but there are better options
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Premium bonds have long held a special place in the nation's hearts. Despite not paying any interest, the lottery bonds are the most popular savings method in the UK a staggering 21 million of us hold them. But if you are foregoing a guaranteed return on your savings in the hope that you are going to win big, be warned. The number of large prizes has just been cut again. From May this year, there will be one fewer of the £100,000 prizes handed out every month (there will be only two from then on) and there will also be two fewer £25,000 prizes (nine instead of 11). Your chances of winning any prize at all won't change the odds will remain a lengthy 30,000 to one but there will be more £25 prizes to make up for cuts to the number of bigger prizes.

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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.