Overview
- Financial planner Ian Futcher says Premium Bonds can suit older savers seeking safety and access, offering tax-free prizes as an added bonus.
- He cautions that younger savers focused on long-term growth are likely to find better guaranteed returns in higher-yield accounts or investments.
- The prize fund rate stands at 3.6% after several cuts this year, and with the base rate held at 4%, experts see scope for stability though increases are viewed as unlikely if cuts follow.
- Each £1 bond has equal odds of winning at roughly 22,000 to one, with monthly draws featuring two £1 million jackpots and other large prizes such as £100,000 and £50,000.
- NS&I highlights full HM Treasury backing that protects 100% of holdings, contrasting with typical bank protection caps of £85,000, and advisers recommend end‑of‑year portfolio reviews.