Martin Lewis questions popularity of Premium Bonds for children as prize rate drops

Martin Lewis has questioned the popularity of buying NS&I Premium Bonds for children, suggesting they may not be the best gift. He noted that most children will not win prizes, making regular savings accounts a better option. Lewis explained that Premium Bonds are more suitable for those with larger amounts saved or who pay tax on savings interest. He stated that children typically do not meet these criteria, and many will likely win nothing with smaller investments. Starting in January, the prize rate for Premium Bonds will decrease from 4.15% to 4%. The odds of winning remain unchanged at 22,000 to one, with a slight reduction in the number of larger prizes.