Premium Bonds

For starters you can only put a max of £30,000 per person into Premium Bonds. On the plus side, they are tax free and very low risk.

The average interest on them is currently 1.5% (tax free). There is a chance you get lucky and win a big prize. More than likely the return will be low, I've won a few £50 / £25 prizes.

I personally wouldn't say they are a serious investment, though I have a few grand in myself for a tiny bit of interest.

is the 1.5% interest the ave return via prizes ?

1.5 % being the average, means a very bad investment

1million top prize £25 lowest prize... working out a return on a average is not very good as you will more likely get 0.0x percent while some one else get 300%+ when the cop the top prize.

To summerize the average return is a pointless figure, your better of investing in highest interest rate and then spending the interest on lottery tickets

If you are a 40% taxpayer, the income calculation is in your favour as the income is not taxed.

Still not a great investment, but I use them as a place to put some of my semi-long term 'safe' money as it is 100% safe, and can be got at within a couple of weeks.

If you have all your money in one bank, and that gets into trouble, will you be able to access your cash?

a careful note if you are planning tohold them long term -they are effectively a means of lending the government money-now we all know how 'well placed 'this government is .

It is not worth it at the moment the return is so low better to put in High Income Unit Trust

Scottish Widows have some good Multi Managed Funds mixed up in Uk and US abd Bonds etc.