Is there something going on with Premium Bonds?

[Bayonetlightbulb]

Is there something going on with Premium Bonds at the moment? On 2 consecutive threads I have read this evening there has been posters advising to invest money in them. One was as an 18th birthday present then multiple posters on a thread where someone was wondering what to do with 50k. Have they become much more attractive all of a sudden? I would have thought an ISA might have been a better prospect.

An ISA is better. If you have £50k to put in premium bonds, it's likely you've filled your ISA allowance already.

You can put up to £20k a year in an ISA.

You can put up to £50k in total in premium bonds. It's a safe investment in that the money invested is never lost, and you could potentially 'win big', but you're right that there are better returns on investments out there. However a premium bonds deposit is often a good 'stop gap', and - crap explanation coming up - the total prize fund is loosely aligned with the BoE annual interest rate.

ETA: and any winnings are tax free.

As above. My ISAs are maxed, and possibly about to be taxed. I've netted above 5% in the past year on Premium Bonds so it feels like a good investment, but obviously not for everyone.

I think people advise it because it’s seen as ‘safe’ - and in an era of very low interest rates, had a marginal chance of getting a better return than a savings account.

They are also easy to access, if that’s important to you.

From an investment standpoint, there’s not much point putting money in them if it’s for the longer term.

I don’t think they’ll start taxing people’s existing ISAs.

Id be more concerned about the allowance being decreased, or some new policy saying you have to invest in UK funds.

I read that they want ISAs to be invested in stocks and shares rather than cash. Apparently there is billions languishing in cash. Thing is, if you only have a bit in an ISA that you've saved, you don't want to risk the value of it, which is what stocks and shares do.

I thought ISAs were restricted about when you can take money out but Premium Bonds you can cash them in at anytime.
I was the one who suggested Premium Bonds on the 18th birthday thread - my thinking was that if in 6 months time the birthday girl wants something special then she can cash them in a pay for it.
I thought with an ISA it's locked in and you can't touch it.
Am I wrong? I honestly don't know.

Nothing wrong with a Premium Bond.

My mum's financial advisor recommended she put her money in some last month, so maybe it's a current trend.