Martin Lewis shares who should avoid premium bonds despite over 22million people in the UK investing in them

MARTIN Lewis has advised that immoderate radical should debar premium bonds - contempt 22million successful the UK investing successful them.

The celebrated money redeeming adept explained that the government-run savings accounts mightiness not beryllium the champion enactment for those lone capable to put a tiny amount.

Speaking connected The Martin Lewis Podcast, Martin, 52, archetypal explained wherefore premium bonds are truthful fashionable - with the UK holding much than £100billion successful them.

He noted that the superior you put into bonds is safe, making them an attractive, low-risk option.

He besides acknowledged that the lottery-style quality of premium bonds - whereby your bonds are entered into a monthly prize gully - tin beryllium attractive.

And, the information that immoderate winnings are tax-free tin beryllium seen arsenic the eventual clincher, helium added.

However, Martin warned listeners that the chances of winning a prize are slim if you tin lone put a tiny amount.

He said: "For those radical lone putting a tiny magnitude successful and who don't wage tax connected savings - which is simply a batch of radical - premium bonds are a atrocious bet. 

"I mean, determination volition ever beryllium idiosyncratic who beats the likelihood and has much than emblematic luck but they're a atrocious bet."

If you enactment £1000 into premium bonds, helium explained, you person a 56.5 per cent probability of winning nothing, a 43 per cent alteration of winning astatine slightest £25, and a 35 per cent accidental of winning astatine slightest £50.

Therefore, the astir apt result is that you triumph thing astatine all.

However, the accidental of winning a prize increases the much wealth you invest, Martin explained.

He added: "The much you enactment in, the person you volition get to the prize money rate.

"Once you commencement moving up to betwixt £2,000 and £3,000 and your instrumentality is astir 3.5 per cent, if you would different beryllium paying taxation connected your savings… past they commencement to go a decent stake with emblematic luck.

"So you volition privation to capable up your currency ISA already, astatine that constituent they go a decent bet, particularly if you tin max them up and you're fortunate capable to enactment £30,000 to £50,000 in, particularly if you would beryllium paying taxation connected your savings otherwise.

"With emblematic luck, they bash go thing worthwhile."

Rounding disconnected his argument, helium added: "I judge the thought of psychology that radical similar dreaming large and winning £1million.

"But I mean, you've astir apt got much of a accidental of tossing a coin and it landing connected its side.

"Premium bonds tin enactment for radical who person a batch of savings and are paying taxation connected them, they're not truthful bully for smaller savers."

It's not the lone proposal Martin has dished retired recently, with the adept besides encouraging his followers to cheque whether they've paid excessively overmuch to the Student Loans Company.

Making the elemental cheque could onshore you with a hefty refund - arsenic one pistillate shared she'd clawed backmost £840.

And, speaking connected is ITV programme The Martin Lewis Money Show Live, the TV presenter besides urged Brits to cheque what involvement they presently get up of an expected autumn successful the UK basal complaint this week.

He said: "UK basal rates are expected to beryllium chopped connected Thursday, meaning involvement disposable to savers volition proceed to decrease

"So savers, this is simply a important infinitesimal to act. Check present what complaint you're earning.

"If it's little than 5%-ish, we request to benignant it."