Thoughts on premium bonds?

Whats everyones thoughts on premium bonds? Ive been wondering what to do with my saved up cash and I've just shoved most of it in them for now.

Much better than an ISA in my opinion.

What do you guys think?

If you don't know what premium bonds are, here is the website:

http://www.nsandi.com/

Basically a 0% interest saving account, and instead your investment is like a ticket in the lottery, every month there are draws and prizes from £25-£1m, its like a free lottery.

 

I posted on another thread saying that I'd invest in bonds that give you coupons. It's better to reinvest the coupons too if possible. By 2015, we're expecting Bernanke to raise the interest rates so the prices would go up. It would be interesting to perhaps think about shorting some bonds then.

 

They're far worse than a savings account. The chance of winning the £1 million is 1 in 43,474,820,688. The chance of winning even £25 is 1 in 24,000. Put £1,000 in Premium Bonds over a year and while the interest rate predicts a £15 win, the majority of people (61%) still win nothing. You're better off putting it into a cash ISA which is tax free, or even a savings account. You're money is protected up to £85,000.

http://sythe.org/showthread.php?t=1463708