Martin Lewis does not like Premium Bonds.

Martin Lewis (moneysaving expert) does not like premium bonds as they are a poor long term investment despite the tax perks. The difference between Martin and myself is that I factor in a second, hidden factor.

• No one can live without hope. If we have no premium bonds we may buy lottery tickets or gamble in even worse ways.
• I look on Premium Bonds as a deposit account rather than a long term investment. Once we see them in this way they look far more attractive.
• Premium Bonds are tax free which makes them a better investment for rich people than poor ones.
• The best way to buy premium bonds is to make a regular purchase- preferably at the end of the month to minimise the 'dead' time while your bonds wait to be entered.

Premium bonds give a warm glow of potential gain once a month.