I have been a big fan of Premium Bonds for many years now, and still regularly recommend them as an alternative to a bank or building society cash reserve. They’re safe (as the government and state), tax-free and accessible within a couple of days. OK, you win prizes, randomly allocated by Ernie (kids etc.) and if you only have a small amount, might not get anything. But if you’re able to have the full £50k or anything close, you will, in my experience, do as well with £25 here, £150 there, as you will in the bank, and you never know. Someone wins a £1m every month, and the £1 Bond bought by my grandmother when I was born, won £25 58 years later. Which turned out to be at least 3x what I could have earned elsewhere.
“The true impact of inflation on cash savings and pensions”
Leaving your money in the bank or building society has always meant that its ‘real value’ after inflation will go down. Although rates go up to, supposedly, control inflation, any chart you look at will show that, apart from a few very short-term blips (N Lamont, I’m looking at you) they are never more than inflation.
