Martin Lewis advises on savings accounts and premium bonds
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Money Saving Expert founder Martin Lewis told This Morning viewers that unless you’re “very lucky”, Britons are better off putting their savings into a savings account. He also recommended which savings accounts were best.
In response, financial journalist Martin Lewis said: “The Premium Bond prize fund rate is currently one percent.”
He continued: “What that means is that if you take all the bonds and add up all the prizes and divide it by the number of people you get one percent back.
“But actually for everybody who wins a million, a lot of people have to win less than that, so someone with typical luck will win less than one percent.
“The best easy access savings account right now is with Chase Bank which pays 1.5 percent.
“You can fix for a year at over two percent – that’s the first time since 2019 you’ve been able to get rates above two percent – you can get a two year fix at 2.5 percent.”
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“If you have average luck – in fact you’d have to be very, very lucky right now for Premium Bonds to beat the best savings accounts on the market.
“You’d have to have very, very good luck.
“Of course there’s always the chance you’ll win a million – but for most people – unless you pay tax on savings, which most people don’t have to anymore, you’re better off with savings.”
NS&I’s Premium Bonds are popular with some Britons because they offer the chance to win a jackpot prize of £1million every month.
They are also backed by the Government and have no penalties for those who need to withdraw cash.
May’s winners came from Greater Manchester and the London borough of Wandsworth with winning bonds originally bought in September 2016 and June 2003.
Each bond has an equal chance of winning which is decided by a machine called ERNIE.
NS&I said: “Each £1 Bond number has an equal chance of winning, regardless of when or where it was bought.”
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NS&I Premium Bonds offer savers a number of benefits including:
What are the odds of winning?
34,500 to 1 (for every £1 Bond)
What’s the interest rate?
1.00% (annual prize fund rate)
Will you pay tax?
No. All prizes are tax-free
What’s the minimum people can pay in?
What’s the maximum savers can pay in?
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