Premium bonds - worth buying now interest rates collapsed ?

ashm1

Previously premium bonds were unattractive but as we head toward towards 0% savings accounts are premium bonds more attractive as an investment?

If we enter a deflation I assume you can't lose your capital in premium bonds so you would get a return whatever and further the fund has an 'interest rate' (although they don't pay interest) but presumably the rate cannot go down to zero else they'd be no prizes.

Also the tax advantage.

Any thoughts?

nilrem_2

Well they might be if you received Zero interest on your savings but as you can still get up to 4% on fixed rate savings maybe they are a better bet than premium bonds!

Of course it does not hurt to have some bonds but on the understanding that you are unlikely to win.