MARTIN Lewis has advised that some people should avoid premium bonds - despite 22million in the UK investing in them. The famous money saving expert explained that the government-run savings accounts might not be the best option for those only able to invest a small amount. 1 Martin Lewis has warned his listeners to think twice about investing in premium bonds Credit: ITV Speaking on The Martin Lewis Podcast, Martin, 52, first explained why premium bonds are so popular - with the UK holding more than £100billion in them.
He noted that the capital you invest into bonds is safe, making them an attractive, low-risk option. He also acknowledged that the lottery-style nature of premium bonds - whereby your bonds are entered into a monthly prize draw - can be attractive. And, the fact that any winnings are tax-free can be seen as the ultimate clincher, he added.
Read more Money News SHAKE IT UP McDonald’s to make major menu shakeup TODAY adding ‘dreamy’ new festive treat WINTER WARMER Lidl reveals bargain £25 heated throw that's cheaper than heating However, Martin warned listeners that the chances of winning a prize are slim if you can only invest a small amount. He said: "For those people only putting a small amount in and who don't pay tax on savings - which is a lot of people - premium bonds are a bad bet. "I mean, there will always be someone who beats the odds and has more than typical luck but they're a bad bet.
" If you put £1000 into premium bonds, he explained, yo.