Article: Is Ernie a nice earner? Prizes are down, but Premium Bond holders can still make money, as Teresa Hunter finds out

Just how lucky do you feel? Judging from the boom in sales of Premium Bonds, falling stockmarkets combined with poor returns from deposits have turned Britain into a nation of gamblers.

Sales of Premium Bonds, which have more than quadrupled to pounds 17bn over the past eight years, reached a record level in January when investors took a punt with an extra pounds 410m. Their lure is the monthly chance to win the top pounds 1m prize. This may seem like small fry compared to the rollover jackpots won on the National Lottery, but, unlike the lottery, you don't lose your initial stake if your numbers do not come up.

With stockmarkets in the doldrums and savings rates falling, it is easy to see ...

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