Many of our clients like to hold on to their Premium Bonds in the hope that they may win the £1m jackpot. For many years, we have been disparaging of these “investments” as they have provided very poor historic returns.
The latest news is that Premium Bond prizes will be cut again from this May. This means the the estimated number of tax-free £100,000 prizes each month will fall from three to two, and there will also be two fewer £25,000 prizes.
Martin Lewis has now undertaken some research and this confirms Magenta’s view and our previous experience, that the chance of winning £0 is a virtual certainty and even winning £25 is as low as 1 in 30,000.
If you have Premium Bonds you have been desperately clinging to for years, in the hope you may win a good prize, now may be the time to end the love affair and re-think your investment strategy! Contact us if you would like to discuss this further.
You can read more in these two articles:
http://www.moneysavingexpert.com/savings/premium-bonds
http://www.bbc.co.uk/news/business-38893452