The money saving expert admitted he found it 'a bit strange' that so many people buy Premium Bonds for kids
Martin Lewis has suggested that purchasing Premium Bonds for children may not be the best present this Christmas.
He told the caller: "When I do my show and I talk about who Premium Bonds are best for I normally explain it's for people who have got near the maximum - which is £50,000 - and people who pay tax on savings interest. Now children very rarely have near the maximum and they will rarely pay tax on savings interest."
He added: "If you're putting over about £3,000 it gets a bit better, they'll still - with typical luck - not be winning as much as they would earn interest in a normal savings account. But if you happen to have loads of money and you were paying interest on your savings so that they may be charged on their savings and therefore could be paying tax and you were putting in £30,000, £40,000 or £50,000, the Premium Bonds wouldn't be bad for kids.
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