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I once had about £20k in Premium Bonds. That was all my savings. I won a few times but only £25 a time. Overall effective interest rate was pretty poor. Its not great. I keep £100 in now, just in case. Thats now £125 thanks to another win. I've also had £5 worth since I was born (late seventies - its never won anything).
The rest is now in Index Trackers and similar. I've done the same for my son.
tallsam-
Yep went through similar situation.. the only thing that keeps you held into premium bond is a chance of the big win...which in reality is very small, so much so that you'd be better off spending the interest from a decent savings account on scratch cards and lottery tickets.
On the other hand long term drip feeding into a low cost index track yields amazing results given the miracle of reinvestment and compound returns.
wildwest
Stick it a junior isa..choose an index fund and it will produces regular dividends and appreciate in price over the long term
Key is to make sure fees are low.
Warren Buffett school of thinking.
I would only do surplus in premium bonds the return and chance of winning is too poor.