Half a century after their launch, premium bonds remain popular savings vehicles, National Savings and Investments (NS&I) has claimed.
Premium bonds saw record sales of £1.3 billion last month, and Britons have £36 billion invested in them overall.
Investing in a premium bond allows customers to avoid the capital gains tax and income tax which affect some other investment vehicles.
Customers can make a minimum investment of £100, or up to £30,000, and the sums available in the prize draw have risen exponentially over the last 50 years.
The total jackpot on June 1st 1957 was just £1,000 compared to £1 million today.
The key difference from the National Lottery is that customers' investments are carried over until the next draw, instead of being lost each time.
But although they are technically described as a 'savings' vehicle, critics have pointed out that the sum customers win back from premium bond investments, if any, is entirely a matter of luck.
Find out more about investment bonds
© Adfero Ltd