Premium Bonds

Premium bond is a financial investment were the return is dependent on a prize draw every month (Luck). Premium bonds do not earn an interest. There are advantages and disadvantages of investing in premium bonds which is explained below.


  • 100% security on your investment
  • A chance to win up to £1 million  Jackpot
  • A great way to invest for your children or grandchildren (risk free)
  • Only about £100 needed for investment
  • A great way to keep some money away for the ‘In case of emergency’
  • The prizes you win is Tax free


  • No Regular income
  • Your investment might be eroded by inflation
  • The chances of actually winning big are slim
  • Your investment is not instantly accessible
  • Other interest saving accounts can earn more money for you


Trying to understand its worth is easier when you look at certain factors such as your financial position, The Economy, age, assets you already own and what kind of risk taker you are.

For instance, if you own some spare cash and you think you might be lucky to win the big cash, then premium bonds is worth the investment.

If you need somewhere to keep some cash because you are saving long term, like, for a wedding, house, car or any thing else, and you want a place where access to the money is not readily available, then premium bond is excellent. (you just might be lucky)

If you want a safe place to keep some money  for your children or grand-children and you think you have a lot of luck on your side, then premium bonds might just be your best option.You never know, your £100 or £500 investment might turn £1 Million just by pure luck. that means your children will be sorted (if you invest wisely). Also its important to note that its not just the jackpot that is available, you can win smaller prizes as well.

I hope this short article has given you an idea on what premium bonds are and if they are worth an investment.