Premium Bonds

[yansee]

I`m thinking of getting my grandchildren £500 premium bonds each,i know you don`t get interest paid but the lure of winning a big prize,i`ve read a few articles and they seem to say it`s not worth it,just wondering what AnswerBankers think ?

[Sqad]

What else could you do with £500?
The chances of winning anything with that small amount is small, very small, but if you are not in, then you can'r win.
Interest rates are abysmal, so yeah! why not?

[maggiebee]

I would look at a Children's ISA but, as Sqad says, the interest rate might be rubbish. There's a chance of it rising though, unlike premium bonds.

[woofgang]

what sort of gift do you want to give them?

[MallyJ]

I cashed mine in 4 years ago...I had some from the 50s and some I bought when my mum died some 30 years ago....I did have a small win.. but what was better was having a small amount of money that I could not access easily and therefore was still in place years later. I have my Auntie Grace to thank for the first few. It is a lovely idea...they might win but even if they don't the money is there for them if they need it later in life...and you can't just take it out of the bank when you fancy a night out.

[Old_Geezer]

It's a gamble ain't it. It isn't an investment. Depends in what one wants to do with the money. IMO a proper trust or savings account is encouraging a better attitude to money and saving for what you want in life. But it's no big deal.