Premium bonds have never been a particularly attractive investment, more like a middle class lottery where you didn’t actually lose your money every week.
And thanks to the plunging interest rate, they’re now even less attractive, as National Savings & Investments have cut the prize fund from £60 million to £32 million, and the two monthly prizes of £1 million cut to just the one.
The truth is, Premium Bonds can be very profitable for the lucky few who win the big prizes, but most investors will find that they could earn more investing in an ISA.