Premium Bonds: Savers Hold £137bn in Lottery-Style Product
1 report, 1 independent
Updated 00:00
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What happened
Premium Bonds, a lottery-style savings account, currently holds over £137bn in funds from 22.7 million savers. The product pays no interest, meaning invested money is at risk of erosion by inflation. Analysis shows that a saver who invested £1,000 eight years ago could have earned £2,524.50 if the money had been invested elsewhere.
From aol.com
Why it matters
Politicians have relied on Premium Bonds as a source of cheap state funding. The product's structure, which offers no guaranteed return, means its popularity is driven more by tradition than by rational financial planning for savers.
From aol.com
Who's involved
- TelegraphPublished the report detailing the structure and risks of Premium Bonds