Pay mortgage or put on Premium bonds

IrishSean

I cleared the mortgage but have some in premium bonds, which is technically an emergency fund.
There's a lot to be said for owning property & living mortgage & rent free; if you lost all income most could live on means tested benefits in a property owned outright, until work or other income is secured. 

I've small debt left @ 0% but put in premium bonds while clearing debt @ 0%, as theres a chance my bond money will work harder than the 0% debt that's neither making nor costing me anything. 

Bonds are a funny one (MSE provide an excellent statistical appraisal).
In short you really need 5 figures plus to get close to the claimed 1.4%. Yet as with anything in life luck can fall in your favour with 3 and 4 figure holdings winning 5, 6 even 7 figure prizes...

Singlespeeder

I've started keeping my Emergency Fund in Premium Bonds. I'm getting next to nothing keeping it in a bank account and at least stand a small chance of winning something.

reliquit

Surprisingly, lockdown has been good for me. Pension income hasn't changed, but restrictions mean that there have been no pub lunches or expensive coffee shops for 4 months and consequently I have found myself with about £100 per month left over so I have been investing it in Premium Bonds.  Yes I know how poor the odds are, but with only a few hundred to invest where can I get better? Premium Bonds are safe, and if I need my money I can get it back. Seems ideal to me in the current circumstances.

TheAble

Premium bonds are probably the best savings rate of return right now but inflation is still running at a higher rate, so eroding your purchasing power in real terms. They're fine for keeping a few months worth of expenses in but I wouldn't want to be investing huge sums.