Martin Lewis has called out a “complete urban myth” around NS&I Premium Bonds. The Money Saving Expert discussed the popular form of savings during his Martin Lewis Podcast on BBC Sounds. National Savings and Investments (NS&I) Premium Bonds allow investors to buy bonds, with a minimum of £25, and have the chance of winning money in return.
With a max prize of £1 million, many use Premium Bonds accounts as a way to save money whilst being in with a chance to earn. (Image: Kirsty O'Connor/PA Wire) Mr Lewis explained that money placed in Premium Bonds was “as safe as it gets” because they are “backed up” by the Government. He said: “Every penny you've got in there is backed up by the government.
The only way you could have a problem is if the government went bust - then we'd all have bigger problems. “In other words, you're always at worst going to get your money back. “Each individual bond goes into a prize draw and has a chance of winning an amount of money, from £25 up to a million pounds.
And that's what dictates the interest that you get. So your interest is a gamble, but your money is totally safe." He then exposed a commonly believed myth among people who invest in Premium Bonds.
Mr Lewis said: “"I often get asked, I've had my premium bonds a long time but haven't won anything, will I be better off buying new bonds because they seem to win more? Complete urban myth. “Every bond has the same chance of winning in the prize draw as every other bond..