Remember up to 1000 (BR) or 500 (HR) interest is tax free, so depending on your capital it might be better to go for non-isa if you can get better rates returning up to that limit.
As said, premium bonds don’t give a definite return, but if you have a spare 50k…you might win something bigger. The odds aren’t good though, and the total pot return is about 3.5% at the moment I think, but for everyone that gets more than that, there’s someone else that gets less. For the guys that average 4%, you’ve been very lucky. The fewer bonds below the 50k max you have, the less likely you are to win. As rates go down the average pot value is reduced too. A few years ago it was 1%. Alway under base rate whereas cash ISAs tend (I think) to track around base rate?
If I knew I didn’t need the money, wanted no risk, and the income was taxable, I’d go for fixed rate isa, especially now, as rates are probably going to fall soon, and Reeves is still making noises about cutting to 10k, but I’m no financial adviser. Obviously as we discussed to death on another thread, if you want to take some risk, there’s a whole world out of potentially better returns out there.
Funnily enough, I just looked at their website, I have just run through the list of high value winners for November, 283 pages, and it seems the vast majority, have got the max amount of bonds 50k. There are not many winners, who don't hold 50k of bonds.
