A topic that people keep discussing with me is Premium Bonds. Are they worth it? Will i make more money than in a savings account? How often will i win? What will i win? Many questions people ask.

The simple answer to it all is in the long run you are unlikely to gain as much money as if it was in a high interest savings account. The way it works is instead of earning interest on the money you have in an account, you get entered into a draw where you can win money. For every £100 you have in your account you get one entry into the draw. So the more money in there the more likely you are of winning. You are allowed to have a maximum amount of £30000 in your account. Odds wise though if you work out the chance you would win and how much over certain periods of time, it is not as much as if it was interest.

I will give you some examples compared to a high interest savings account...


1. £100 over a year, you are likely to win nothing!
    Savings account you would now have £108 a gain of £8

2. £1000 over a year, you are likely to win nothing!
    Savings account you would now have £1080 a gain of £80

3. £10,000 over a year, you are likely to win £100 WOW!!!!
    Savings account you would now have £10,800 a gain of £800

4. £30,000 over a year, you are likely to win £400!
    Savings account you would now have £12,400 a gain of £2400

Now what about over more time...

1. £30,000 over 5 years, you are likely to win £1500!
    Savings account you would now have £44,080 a gain of £14,080!!!!

2. £30,000 over 10 years, you are likely to win £2500!
    Savings account you would now have £64,767 a gain of £34,767!!!!


I will let you make your own mind up if its worth it.....