The amount invested in Premium Bonds grew by £1.5 billion in the 12 months to April 2011, despite an overall drop of £2.6 billion in the amount of money held with National Savings & Investments (NS&I).
The increase, which is almost double the amount invested in the previous year, takes the total Premium Bonds prize fund to £43 billion.
The rapid increase may surprise many due to the relatively poor return that Premium Bonds give.
Premium Bonds do not attract interest in the traditional way; holders are entered into a monthly draw for prizes. Assuming “average luck” savers can expect a return of ...