Any kind of non-guaranteed return always carries some element of risk, even more so with the lottery kind of returns from premium bonds. From one extreme you can have someone who has put in £500 pm for the last 20 years and not won a penny, but some people put in £50 and win the lot first time round - same as the National Lottery really!
The only problem is that you need to beat the rate of inflation to keep your money worth at least the same as when you put it in - if you put £100 in now and never win anything, what's that going to be worth in 5 years time?
Have you seen that the HSBC are offering 8% on one of their accounts? That's a very attractive amount for a guaranteed return, given the current interest rates. Yes it's taxable, but it will still out perform inflation and a premium bond account that doesn't win anything...
BTW, I'm not a financial advisor, and this is not professional investment advice, so you can't sue me if your savings go tits up, ok?
