Premium bonds are worth a go now that bank interest rates are so low
As ever I am reading on ways to make some money and the latest thing that has struck me is premium bonds. Although premium bonds do not pay interest they do give you a 1 in 36 000 chance for every £1 spent of winning monthly prizes of £50, £100, £500, £1000 and even up to 1 million pounds. They generate this money based on the interest levels that would be gained if the money was in a bank.
My bank interest rate on my current account is sitting at 0.5%. This means for every £1000 I put in I will get £5 a year back, not very much in my opinion, whereas if I put £100 a month in to premium bonds I will have a 1 in 3600 chance of winning some of the prizes. I feel this is worth it and the excitement would keep me putting money in month by month. Even better is the fact that you can withdraw your money at any time.
I am planning on putting at least £100 or maybe even as much as £300 a month which would increase my chance of winning into these bonds. I have heard of several people who have won and just imagine if I got really lucky and came away with the 1 million pound prize!! Another way to look at this is of course that this is £300 less I will waste on impule spending!!
In my next post I will consider the other ways I invest and try to make more money.
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