Premium Bonds or a building society for saving money?

Answer 1

Building societies can give you quite a good return APR.

Premium Bonds are quite fun :). You get no interest on your investment but its like lottery. The sweet difference from lottery is that you don't lose your money to bet. But you lose your interest.

The money you win is tax-free as well.

Have fun with your money :D
Cheers
Thuta

Answer 2

If you dont NEED the interest then premium bonds are a good bit of fun with no risk. I have quite a lot of premium bonds & I would say that over the last five years I have just about broke even in prizes against lost interest, but had the chance of winning something bigger.What is annoying is when someone with not may bonds, and maybe not had them long either lands a big prize & you have a lot more bonds held for a lot longer and only get the smaller £50 or £100 prizes but its fair for all & just the luck of the draw

Answer 3

I suppose that the obvious answer would be a Building Society on the balance of probabilities.
Looking at Premium Bonds, the most numerous prize is £50 (around a million of them each month) whereas there are only 2 £1 million prizes and there are something like 16 BILLION bonds held. The chances of winning the top prize must be extremely rare.
However, at the end of the day, it is whatever lights your fire! I have Premium Bonds and never tire of checking on the internet each month to see if I have "cracked it"!

Answer 4

Building Society's offer more flexible savings accounts that may have better interest rates.

The advantage of Premium Bonds is that your money is guaranteed and you have a chance of winning over a million cash prizes every month. Premium Bonds also help a lot of good causes, which is why it is better value for money than the Lotto.

Answer 5

It depends how much you have to invest, putting just £100 or in premium bonds is a waste of time, of course, the more you have, the better chance you have of a decent return. If you put £20 or £30,000 ( At the moment the max. holding is £30,000 ) They are OK. one bonus with them is all prizes are tax free.Another anomaly about Premium bonds is they are still eligible for prizes up to 12 months after the holder dies. ( any prizes go to the benificaries of the estate).
One thing in their favour, unlike the lottery, you can always get your money back if you want!

Answer 6

Both have their place.

Premiums bonds can be easliy accessible if you want your money back. If you look at the liklihood of winning though, a high interest accout on average will yield more. However, you could be a big winner on premium bonds with no risk to capital.