Close Menu
Fund Focus News
    Facebook X (Twitter) Instagram
    Trending
    • SEC delay on prediction markets ETFs has echoes of bitcoin fund battle
    • BSEC sets out rules for converting closed-end mutual funds
    • Gov’t eyes pension funds for reconstruction, but not by force
    • How to Analyze Mutual Funds and ETFs
    • Why are more young Indians and women entering mutual funds, markets?
    • No TDS, no NRE account: GIFT City is changing how NRIs invest in Indian mutual funds – Immigration News
    • Looking beyond mutual funds, SIPs? Here are 7 investment options that can generate regular income
    • Back these energy funds – big winners from the Gulf crisis
    Facebook X (Twitter) Instagram
    Fund Focus News
    • Home
    • Bonds
    • ETFs
    • Funds
    • Investments
    • Mutual Funds
    • Property Investments
    • SIP
    Fund Focus News
    Home»Bonds»Premium Bonds £2,000 warning as ‘your money could be working harder’
    Bonds

    Premium Bonds £2,000 warning as ‘your money could be working harder’

    September 6, 2025


    There is a monthly prize draw for Premium Bonds rather than an interest rate

    A woman checks her finances
    Premium Bonds savers may get a better return on their savings with other accounts(Image: Getty)

    Premium Bonds savers could get much better growth in their savings by switching accounts. Instead of accruing interest, Bond holders see their Bonds go into a monthly draw, with each £1 Bond having an equal chance of winning a prize. But the odds of actually winning a prize are very slim.

    With a maximum holding limit of £50,000 in Premium Bonds, this equates to 50,000 entries into the monthly draw. However, with odds of winning standing at 22,000 to one, bagging a prize is still a long shot.

    Plus most prizes are for smaller amounts such as £25, meaning those with high holdings might have seen better returns with a traditional savings account.

    READ MORE: Top economist warns Chancellor could be forced into major tax rise U-turn

    Tom Francis, head of Personal Finance at Octopus Money, said: “Premium Bonds don’t pay interest, so unless you win, your money simply sits there, gradually losing value to inflation. The thrill of a potential £1 million jackpot is exciting, but the odds are slim: in February, just 164 people won £50,000 and around 1,600 won £5,000 – out of more than 24 million bondholders.”

    Each draw includes two £1million jackpot prizes and other attractive large cash prizes such as £100,000 and £50,000. The expert highlighted two other accounts that are worth considering.

    Mr Francis stated: “For most savers, your money will usually work harder in a competitive savings account or ISA.” At present, there are many easy access savings accounts currently offering rates of 4 percent or above. You can also secure rates of over 4 percent with many easy access and fixed rate ISAs.

    A man making a phone call
    Premium Bonds holders may want to look at switching accounts(Image: Getty)

    If you have the maximum £50,000 in Premium Bonds, if you moved this to an account paying 4 percent, you would earn a guaranteed £2,000 over the course of a year, if the interest rate stays the same. This may be a better option than the small chance of winning a big prize with Premium Bonds.

    There may be slim chances of winning, but Mr Francis said Premium Bonds may suit some savers. He said: “Premium Bonds tend to make more sense as a saving vehicle for people who’ve already used up other tax-efficient savings options like their personal savings allowance, ISAs and pensions.”

    One advantage of Premium Bonds is that all your prizes are tax free. However, this is also the case with ISAs, as any savings or investment growth within an ISA wrapper is tax free. You can deposit up to £20,000 a year into ISA accounts.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

    Related Posts

    news.gov.hk – Institutional bonds issued

    May 8, 2026

    I bonds are the best place to put your cash right now – and that should worry you

    May 6, 2026

    New threat to Labour spending plans as UK long-term borrowing costs hit highest level since 1998 | Gilts

    May 5, 2026
    Leave A Reply Cancel Reply

    Top Posts

    The Shifting Landscape of Art Investment and the Rise of Accessibility: The London Art Exchange

    September 11, 2023

    Charlie Cobham: The Art Broker Extraordinaire Maximizing Returns for High Net Worth Clients

    February 12, 2024

    SEC delay on prediction markets ETFs has echoes of bitcoin fund battle

    May 10, 2026

    The Unyielding Resilience of the Art Market: A Historical and Contemporary Perspective

    November 19, 2023
    Don't Miss
    ETFs

    SEC delay on prediction markets ETFs has echoes of bitcoin fund battle

    May 10, 2026

    Prediction markets ETFs may soon be coming to retail investors and even into retirement plans,…

    BSEC sets out rules for converting closed-end mutual funds

    May 10, 2026

    Gov’t eyes pension funds for reconstruction, but not by force

    May 9, 2026

    How to Analyze Mutual Funds and ETFs

    May 9, 2026
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    EDITOR'S PICK

    Record Returns on African Sovereign Bonds Match With Strengthening Conditions for the Region’s Eurobonds

    October 8, 2025

    Catalyst-free selective oxidation of C(sp3)-H bonds in toluene on water

    July 20, 2024

    SIP inflows remain strong despite market consolidation, boosting mutual fund growth in India

    March 11, 2026
    Our Picks

    SEC delay on prediction markets ETFs has echoes of bitcoin fund battle

    May 10, 2026

    BSEC sets out rules for converting closed-end mutual funds

    May 10, 2026

    Gov’t eyes pension funds for reconstruction, but not by force

    May 9, 2026
    Most Popular

    🔥Juve target Chukwuemeka, Inter raise funds, Elmas bid in play 🤑

    August 20, 2025

    💵 Libra responds after Flamengo takes legal action and ‘freezes’ funds

    September 26, 2025

    ₹9000 monthly SIP can help you retire at 45 with ₹2 lakh monthly pension

    May 5, 2026
    © 2026 Fund Focus News
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.