NS&I Premium Bonds savers warned to 'probably ditch them' by expert

NS&I savers who have put their money into Premium Bonds might want to reconsider, according to a financial guru. Damien Jordan has slammed the investment option on his podcast 'Making Money', which he co-hosts with Timeyin Akerele. He warned: "Premium Bonds are a lottery so the return is not guaranteed whereas on a savings account, it is guaranteed.

" The latest episode also posed questions such as: "How can we efficiently purchase property for children? Or why is it not widely encouraged, likewise with pensions for children?" reports Birmingham Live . The show, which lasted just nine minutes, saw Jordan advise: "Most people who have Premium Bonds probably shouldn't have Premium Bonds..



. Most people shouldn't be holding all their wealth in a lottery, they should be investing it." He added: "They're good for people who've got a lot of money and think 'oh I've got £50,000 I want to park somewhere'.

If you're an additional rate taxpayer you get no allowance for tax-free interest so it might be attractive to you." He added: "It's a bit better than the lottery because with the lottery you're burning your ticket money." Jordan further explained: "The way it differs from a normal lottery is that your ticket is entered into the draw every single month.

If you buy a Premium bond for £1, it's not gone the next month, it's there forever." However, the podcast made it clear: "This is not financial advice. "The reason it's not financial advice is because it's not tailored to you.

We explain the principles of building wealth but if you want personalised advice, it's worth speaking to a financial advisor. As with everything financial, please do your own research. We really encourage that because no one cares more about your money than you and if you learn the basics then it will change your life.

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