Prizes range from £ 25 up to the £ 1million jackpot. The odds of winning in each Premium bonds the monthly draw is currently 34,500 to one for each £ 1 bond number.
He was speaking following new data from HM Revenue and Customs (HMRC) which revealed Cash ISAs attracted an additional 1.2 million savers in 2019/20 as more and more people ignored low rates to save money.
Data showed that savers paid out a large number of ISAs in cash during the 2019/20 fiscal year.
The figures totaled 9.7 million, up from 8.5 million the previous year.
Commenting on the statistics, Mr Andrews said: “Cash ISAs are firmly established in the mindset of the country as the go-to place to put money aside – having been first introduced in 1999 .
“But as more and more people have put their savings into it over the past year, it has perhaps never been so rewarding.
“The value of their tax-exempt status was severely eroded with the introduction of the Personal Savings Allowance in 2016, allowing people to earn £ 1,000 in interest a year before tax on income does apply (£ 500 for higher rate taxpayers), while interest rates hit new historic lows of 0.1 percent last year.
“But in a time of uncertainty, brand familiarity seems to trump both concerns.”
Mr Andrews then urged people to make sure their money is working as hard as possible.
“If you are one of the millions of people who invest in a cash ISA, you need to make sure that it is as rewarding as possible, especially since you can only invest in one each year,” he said. -he declares.
“First of all, carefully consider the affordability you need for the money to be.
“The longer you can lock in the money, the more interest you will get.
“You can also frequently transfer any existing ISAs you have into the new, hopefully higher paying account once you find it.
“Second, be honest about whether cash ISAs are for you.
“Small deposits can earn a lot more in products like high interest checking accounts or regular savers.
“If your goal is growth rather than certainty, also take a look at stocks and ISA stocks.
“There’s more risk with these, but there’s also the possibility that you could make much bigger returns, especially if you’re willing to leave the money alone for a few years. “
Mr Andrews went on to highlight how some might choose to save money through premium bonds.
“Finally, if all you do is put money aside for a rainy day, the premium bonds might be worth it,” he said.
“Your money is safe, you can get it back in about a week if needed, and there is a chance you can earn £ 1million tax free.
“Most people don’t, of course, and many don’t earn anything at all, but with the interest on cash, some easy-to-access cash ISAs are at 0.01% – and even the best ones. payers offering only 0.46% – that’s a lot less. a problem than it once was.
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