My parents are considering putting >150K into prize bonds. Net return is effectively the same as traditional deposits, they have instant access and also a chance of winning. They're into their late sixties so they're not going to start investing at this stage of their life. Question is, should they diversify a little or are their funds relatively secure, also do you receive interest of 1.75% on the amount invested?
As said, you get no guaranteed return. However, for larger amounts, such as 150k, the prizes are structured such that you are quite likely to average a return between 1% and 1.5% tax free per annum.