Robert Walker has held Premium Bonds ever since he was a child and was often given more on birthdays and at Christmas. But now, at the age of 80, he is moving his money elsewhere after years of disappointing returns.
Like millions of savers, Walker, who lives in Leigh-on-Sea, Essex, had bought Premium Bonds in the hope that he would one day hit the jackpot. The bonds, run by the Treasury-backed bank National Savings and Investments (NS&I), are the nation’s favourite savings product — with 24 million savers holding a total of more than £130 billion.
Rather than earning a guaranteed interest rate, the bonds are entered into a prize draw every month that gives savers the chance to win between £25 and £1 million. NS&I awards its tax-free prizes at an “effective prize rate” of 3.6 per cent and there are two £1 million jackpots each month — but many people win nothing at all.
The chancellor is planning a shake-up of the savings…
