Are premium bonds worth it?

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Me and DP are looking to put away about £15k. We'd like to have reasonable access to it, so don't want a long term account. The interest rates on our savings account is really bad, I think it's 0.01%. We aren't too bothered about the interest rate, we just need somewhere to put some money away.
I've been looking at premium bonds. Is it a good way to save? Would anyone recommend? We will continue to add to the savings monthly.
I've also been saving for DC recently. They only have £300 each at the moment but I have a monthly standing order into their accounts too. From what I understand, £300 wouldn't have a good chance at winning but again, I would continue to add to it weekly. Their interest rate is better but is still only 1%.

For easy access savings it's at the better end of returns, but obviously based solely on luck. Theres a calculator on money saving expert where you can estimate what you would get based on average luck. When I've had to withdraw it takes a couple of working days.

The gambler in me likes the lottery side of it vs a predictable paltry interest amount

We win £50 a month on average on £50k. With £15k, you may go several months without a win. I'd probably only recommend premium bonds if you are near max holdings. Think you have 1 in 34k chance to win each month, so you're unlikely to win with £15k.

Yes, that's what I thought, but with interest rates at 0.01% means we'd only be earning £1.50 a year anyway, which is pretty negligible as interest goes.
I suppose my thought process was if we win even just once, then great, we'll be up. If not, we'll only be £1.50 down from what we would have been in a savings account. I know over a few years it would be more but then I suppose we'd only have to win once in 16 years. I know interest rates fluctuate but with the state of everything at the moment, it might be a better bet.

I had 20k for years never won anything.

I had £200 and won £25 on the 2nd month.

I now have £2225 and havent won again which is to be expected, but still quids in in terms of "interest" gained this year.

They're not as good as they were because low interest rates made them vvv popular, lots of people bought max investment so they changed the rules on prizes.

Martin Lewis has an article on this on MoneySavingExpert.

www.moneysavingexpert.com/news/2021/11/martin-lewis-premium-bonds-can-beat-easy-access-savings-but-youll-be-better-off-fixing/

I transferred my cash isa to PBs last year and for me it’s been worth it, the winnings have done better than the ISA interest rate. I had about £40k but can take money in and out which has been another advantage.
For kids personally I would invest in S&S isa/jisa because the growth is more likely to do better in the long run. There was also a thread recently from a mother where one of the kids won a large sum in PBs and the moral dilemma should she share between the 2 kids or leave everything to the one who won it, something to think about!

I got a 1.7% return last year, so better than most savings accounts on the high street but still losing out to inflation.

You're better off looking at a drip feed in to a stocks and shares isa IMO.

In terms of your children, look at the Halifax childrens accounts - they have two: a higher interest (2.5%) monthly saver where you pay in monthly & then on the account anniversary it's dumps it all down into a low interest (1%) easy access account. If you're not going to touch it it can build up quickly. & once the lower interest one reaches £5k, move it out into a JISA, or something else?

It's a good way for a zero risk instant access emergency fund, that you're not dipping in and out of all the time. It takes a few days to get money back, and you lose one draw every time you do this, which reduces your chance of winning.

But if you want more interest, you could always just open a better paying savings account, you can get about 0.6% on instant access, no need at all to leave it in the account that pays almost nothing.

Unless you can lock this money away for a few years and are happy to ride out ups and downs, an investment product is not suitable for the money.

I know ML on MSE does not like them but for a normal person (who doesn't want to keep searching out the "best" rate) they are convenient, safe, simple plus you can get at your money in a couple of days.
We have money tied up in shares, fixed term ISA's etc but we also have a full allocation of PB's (each) and it is great getting a bit of money each month.
We only recently maxed out but over the years I can't recall a month when at least one of us didn't win a prize (or two, or three etc).

Use it as as a deposit on a BTL.

Thanks all, much to think about.
Definitely not getting a BTL. Being a landlord is just not for us.

For children Santander 123 pays 2.5% if you have 1.5k
For instant access, the highest rate I have seen is investec at 0.71%

You'll win maybe 5 x £25 prizes a year with a £15K investment, if you have average luck.

I have most of my savings in premium bonds. They're good for people like me who need a secure, easy access account. They're also a lot more fun than regular savings accounts because you get the chance to win big (which I personally find motivates me to save more than I would otherwise). But most people will get less than 1% return each year.

Whether you decide to put the bulk of your savings into premium bonds or not, it definitely wouldn't hurt to open up accounts for each of you and put a little bit of money in them. Even if you had £1 in your account, you'd still be entered into the draw each month (albeit with a 1 in 4.7 billion chance of winning the jackpot each year).

I invested £10k in Jan 2020 and have since topped up to £34k. I have won £250 in that time.

I've had £20k in for 4 months now. Won £25 each month for the first 3 months, then nothing last month.

I have £30k in an ISA which makes about 36p a month so definite improvement on that! Think I'll move it over

I’d put the kids savings in a S&S ISA and premium bonds is a reasonable option for yours if you’ll need access within a couple of years

I use Premium Bonds for an emergency fund or money I am saving in order to pay for a planned expense (e.g. car insurance renewal every year). All long term savings are in investment account with varying level of risk.

My DD has won 50% of the original investment in 10 years! Granted it was only £150 to begin with not I thought that was not bad going and wish I’d invested more!

Go for it OP. But if fun.