NS&I Premium Bonds: Martin Lewis backs 4.5% cash!

NS&I Premium Bonds: Martin Lewis backs 4.5% cash!

As the year draws to a close, Britain’s savers are once again re-assessing where to park their cash — with NS&I Premium Bonds under fresh scrutiny against high-interest cash savings paying around 4.4–4.5% .  The comparison is not merely academic: with easy-access savings accounts paying strong returns in late 2025, financial experts including MoneySavingExpert founder Martin Lewis have been flagging the trade-offs for typical savers.  What Premium Bonds Offer NS&I Premium Bonds, issued by the UK government’s savings arm, do not pay interest in the usual sense.  Instead, each £1 bond is entered into a monthly prize draw with a range of tax-free prizes from £25 up to £1 million.  The headline prize fund rate — an average figure representing total prizes as a percentage of the investment — stands at around 3.60% .  However, this figure doesn’t guarantee what individual savers receive, as winnings depend on luck in the draw.  Pros of Premium Bonds: Tax-free prizes and capital guaranteed by…