Should you own premium bonds?

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Premium bonds are often seen as good way to save. Read our guide to get a handle on the basics.

Premium bonds are simple savings accounts you can use just like any normal savings account. The difference is that the interest paid on your savings is determined by a monthly lottery. Savers stand to win anywhere between £25 to £1m tax-free. So, how do premium bonds work? If you open a premium bond account you can invest between £100 and £30,000. Savers also get the option to put in £50 a month via direct debit. In return you'll receive the equivalent amount in bonds. For example, if you invest £100, you would receive 100 £1 bonds. >>This article first appeared on Your Money<...

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