MT Week - Are Premium Bonds worth it?

Premium Bonds are something that people are surprisingly passionate about.

In every UK forum for the FIRE (financial independence, retire early) movement, it’s the default recommendation for where you should be putting your emergency fund.

This is despite the fact that there’s no interest payment, and therefore no guaranteed return - something that feels counterintuitive to me when FIRE is all about maximising your income over a short period of time.

When interest rates were much lower, you could argue that the opportunity cost was negligible.

But with interest rates now increasing by leaps and bounds, is there still a place for Premium Bonds?

Here are some things to think about.