moneysupermarket.com: Rise in premium bonds prize pool

Commenting on the rise in the premium bonds prize pool, Kevin Mountford, head of banking at moneysupermarket.com, said: "Whilst there are some increasingly attractive savings deals topping best buy tables at the moment, particularly in the fixed rate bonds market, many people will be looking for alternative places to keep their cash savings, and premium bonds are an interesting option.

"The prize pool increase to 1.5 per cent means that on average, the return on cash in premium bonds might actually be higher than the older or discontinued savings accounts many people are lagging on. But, the real draw of premium bonds has always been the potential for a large, and potentially life changing tax free prize win with no risk to your original capital. However, if you're looking for a consistent rate of return, there are better places to go."