Why Should You Invest In Premium Bonds?

I’ve heard many people say that if there are such low odds of winning in Premium Bonds, then why invest in them. Well, as some people say, that it’s not always about winning. The premium bonds have many other advantages for the investors, besides winning prizes. First of all they are a riskless investment and are protected by the treasury. There are no particular age restrictions. For investors their greatest advantage is that the prizes, which are the return, are tax free - and this saves the investors from a lot of tax, leaving all the profits to them. In times of need, the investors can cash the bonds and get their money back. The only difference would be that then they won’t be getting the return. The bonds don’t need to be bought again and again, and the same bond can win several times because there is no expiry date for Premium savings bonds. There are, however, also one or two problems. Winning is not guaranteed and inflation lowers the value of the bonds. Despite these problems, which are considered important by some people, there are many people who still invest heavily in bonds - and sometimes they do it just for the thrill.