It has become easier to win big on the Premium Bonds, but should you invest? This is the Money podcast
Premium Bonds are a national institution and their award-giving place in the hearts of UK savers has only been strengthened during the years of low interest rates.
But now interest rates are on the rise and Premium Bonds offer not only the chance to win £1 million but also a much better return.
The average price fund percentage on Premium Bonds has reached the staggering heights of 3.3 percent – competing against the easily accessible savings deals.
But what many savers may not realize is that their chances of winning a large Premium Bonds prize of £100,000 or £50,000 have also become much higher.
So, is it time to support Premium Bonds even further, or are you better off with a standard savings account?
In this week’s podcast, Georgie Frost, Sam Barker and Simon Lambert look at the numbers and the pros and cons.
In addition, an even better return of up to 4.6 percent is now offered by five-year fixed-rate savings accounts, but is a long-term savings solution worth choosing stocks and shares?
This week there was more news about annoyingly high inflation as the CPI remained stubbornly above 10 percent, but why are food prices still rising so fast, are supermarkets or manufacturers benefiting from it and what can you do about it?
And finally, supermarkets have a new loyalty card: lower prices for people with a card and more expensive groceries for people without a card. Sainsbury’s Nectar prices have followed Tesco’s Clubcard prices and now the Co-op has member prices too.
Is this enough to change Simon’s mind about loyalty cards?