Money Saving Expert (MSE), the consumer site founded by Martin Lewis, has warned that Premium Bonds are not worth it for most UK savers, even after recent prize rate increases. In its latest newsletter, the team said that while the prize fund rate has risen to 4.35% for September’s draw, most people with typical luck will still do better with standard savings accounts.
Premium Bonds vs Standard Savings
NS&I Premium Bonds allow people to buy bonds worth £1 each, with a minimum holding of £25 and a maximum of £50,000. Each month, bonds are entered into a draw for tax-free prizes ranging from £25 to £1 million. Despite more than 22 million people in the UK holding Premium Bonds, MSE says most savers could do better elsewhere.
The prize fund rate has been raised twice in recent months, going from 3.3% to 3.8% in June and then up to 4.35% for September’s draw. MSE notes this is now closer to top standard easy-access rates of 4.5%, but most people with typical luck won’t see the same returns.
Odds of Winning
Based on the prize breakdown for September 2026, the odds of winning per £25 of Premium Bonds vary significantly. For a £25 prize, the odds are 1 in 880, with 1,717,659 winners per month. For the £1 million jackpot, the odds are 1 in 2,739,519,158, with only two winners per month.
MSE adds that while Premium Bonds are tax-free and backed by the Treasury, there is no guarantee of winning, so savers could effectively earn nothing from putting money into them. The team advises that if you are moving money from other savings accounts, do so during the last week of the month to minimise time not earning interest or in a draw.
