More than 14 million Premium Bonds holders have never won a prize, potentially missing out on thousands of pounds in interest, new data from AJ Bell reveals. A Freedom of Information request shows that 14.3 million of the 24 million UK holders—62%—have never received a payout, with serial losers holding bonds for an average of 8.1 years.
Lost Returns: £8,122 at Stake
Sarah Coles, head of personal finance at AJ Bell, warned that the odds are stacked against savers. Each bond has a 22,000-to-1 chance of winning any prize each month, and the bonds pay no interest. Over time, holders lose spending power to inflation. The average unlucky holder has £128.91 in bonds. If that sum were in a cash savings account earning consistent interest, it could have grown 17% to £150.82 over 8.1 years. For someone with £5,000 in bonds, the missed interest totals £5,850. Investing in a global tracker fund could have yielded a 162% return, turning £128.91 into £338.30 and £5,000 into £13,122—a difference of £8,122.
Expert Advice: Evaluate Your Winnings
Coles advised bondholders who have never won to consider whether their money could work harder elsewhere. “If you’ve left money in these bonds for years, it’s worth considering how much you’ve won overall, and asking yourself whether you have kept pace with inflation,” she said. NS&I defended Premium Bonds, calling them a “fun way to save” with a 100% government guarantee and easy access. A spokesperson noted that the latest draw awarded over six million prizes worth more than £433 million, and since 1957, 845 million prizes totaling £42 billion have been paid. However, the odds of winning remain unchanged, and the more bonds held, the better the chance.
Comparison with Other Savings
The AJ Bell analysis highlights that while Premium Bonds offer excitement and safety, they may underperform compared to interest-bearing accounts or investments, especially for those who never win. Savers are encouraged to review their overall returns and consider alternatives.
