Hargreaves Lansdown: Premium bonds now more attractive

04 October 2007
Premium bonds are now a more "attractive" investment opportunity than in previous years, it has been claimed.

Meera Patel, senior analyst at Hargreaves Lansdown, said premium bonds now have two £1 million jackpot prizes because more people are choosing to invest in them.

The government is marketing the bonds in the right way, Ms Patel stated, suggesting that investors can "rest assured" that their investments are safe and are backed by the government.

"The prizes you win are all tax free, and that is the real benefit of premium bonds," she commented.

Ms Patel added: "The chances of winning the jackpot is very low, but you still have the chance of winning other amounts."

In May this year, National Savings & Investments reported that the 50th anniversary of premium bonds saw a record level of investment.

According to the organisation, £8.2 billion worth of premium bonds were sold during 2006-07, compared with £7.8 billion in 2005-06.

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