Earlier this week, Martin Lewis took to X, formerly Twitter to share the amount of Premium Bonds he thinks are needed for a “decent bet” of winning. “NS&I Premium Bonds are a savings account you can put money into (and take out when you want), where the interest paid is decided by a monthly prize draw,” Martin recently explained on MoneySavingExpert (MSE). “You buy £1 bonds and each has an equal chance of winning, so the more you buy, the more your chances improve.
” Premium Bonds customers can invest between £25 and £50,000, and prizes that get shared out range from £25 to £1 million. Who is Martin Lewis? Although the distribution of prizes changes each month, since 2014 there have been two monthly £1 million jackpot winners – the prizes are tax-free. However, posting on X, the MSE founder revealed: “Why do so many people give children Premium Bonds? Premium Bonds are only a decent bet if: “- You've a big whack in, say £10,000+ “- & you pay tax on savings interest “Most kids have/do neither.
With £1,000 in over a year with typical (median average) luck you'll win nothing.” But some Premium Bond holders seemed to disagree with Martin, as one responded: “Completely disagree. We’ve had returns that easily outstrip interest rates.
Maybe we’re just lucky.” Why do so many people give children Premium Bonds? Premium Bonds are only a decent bet if - You've a big whack in, say £10,000+ - & you pay tax on savings interest Most kids have/do neith.