What are premium bonds and how do they work...a friend of mine has them and manages to earn 50 quid on them every now and then.

Premium bonds are a form of UK government investment bond that mixes a lottery element, so cash prizes of different sizes are awarded randomly each month. I think.

Interesting, I was about to start a thread on Premium Bonds.

I've got Premium Bonds and have managed to win the odd £50 on occassion.
Fingers crossed one day I'll hit the jackpot.

The Irish Government also sells bonds called Prize Bonds.

Has anyone else heard of them or bought them at some point in time?

Wish there are also premium bonds in our country so that we can also avail of its benefits

Well, like any lottery, it "could be you" - but probably won't be.

Guess, there is also a one in a million chance of winning as this is just like any other kind of lottery but at least, there is a chance and a hope to win

A good excuse to save, though - once you enter most lotteries, that's cash burned - with Premium bonds, it's still there.

So then premium bods really aren't worth it in the long run. I am still a bit confused on this lottery aspect of things.

Anything involving a lottery and investment, I would stay away from. But that’s almost what playing the stockmarket is, especailly when playing the penny stocks.

I have heard of a few countries overseas offering savings accounts with reward bonuses and lottery raffles.