Martin Lewis explains whether Premium Bonds are worth it

On The Martin Lewis Money Show tonight, the money saving expert explained whether he thought Premium Bonds were worth saving into. He compared the rates people get with bonds, compared to the top easy access accounts right now.Premium Bonds are an investment product issued by National Savings and Investment (NS&I).Unlike other investments, where people earn interest or a regular dividend income, holders are entered into a monthly prize draw where they can win between £25 and £1million tax free.The prize fund rate is 2.02 percent so for every £100 people pay in, they would get £2.20 if it was a normal account.However as interest is paid with a prize draw, holders can’t get £2.20. They can either get nothing or £25 and more.READ MORE: DWP rule change could see millions of people on PIP and Attendance Allowance worse off Martin Lewis shares probability of people winning Premium Bonds (Image: ITV/GETTY)Using a probability calculator, Mr Lewis explained what people will actually get in the Premium Bonds prize draw with ‘typical luck’.It showed that on up to £1,000, with typical luck people would get nothing. So for smaller amounts invested, people won’t win much.Typical luck refers to the median average of those who have won, whereas the prize fund is the mean average.Mr Lewis said: ‘With typical luck, you will get nothing.DON’T MISSFree prescription: Over 60s may be left waiting longer but 15 groups are eligible now [INSIGHT]New OVO Energy trial offers free smart boilers and cuts emissions 40% – are you eligible? [ANALYSIS]Britons urged to consider ‘simple’ boiler hack that could cut energy bills by £112 a year [INSIGHT] Each month, two people have the chance to become millionaires with Premium Bonds (Image: EXPRESS)People can cash in their Premium Bonds at any time without penalty.According to NS&I, it takes up to three banking days for the money to reach your account, unless you have elected to cash in after the next draw.Money invested is secure, since Premium Bonds are fully backed by the Government.They are the most popular savings account in the UK.The Martin Lewis Money Show is available on ITV player.