Martin Lewis has said that some people are “least suited” to investing in Premium Bonds, suggesting their money could work harder elsewhere because their chances of winning big remain slim.
The MoneySavingExpert (MSE) founder described Premium Bonds as “the UK's single most popular form of savings”, with on average “over £136bn” invested in them. However, he claimed many people would be better off switching their investment strategy entirely.
Who should avoid Premium Bonds?
Speaking on his BBC podcast, Martin said: “Is it time for you to ditch premium bonds? The irony of these bonds for me is we tend to give them to the people they're least suited for.”
The personal finance expert said that “most people” with typical luck will win less than the current Premium Bond prize. In reality, many people with stakes in these bonds could “earn more just in a bog standard easy access savings,” says Martin.
How Premium Bonds work
A Premium Bond is a government-backed savings and investment product issued by National Savings and Investments (NS&I) in the UK. Your money does not earn regular interest, but is instead entered into a monthly tax-free prize draw.
Every £1 invested gives you a unique bond number and one entry into the monthly prize draw, with the maximum amount you can hold in UK NS&I Premium Bonds capped at £50,000 per person. Holding more bonds increases your overall chances of winning, but wins are never guaranteed.
Who benefits most and the odds of winning
Martin said that the people most likely to benefit from these draws are those “going to have nearly the maximum” and those who are “already going to pay tax on other savings”. People who should avoid the bonds are those with “small amounts” and those who don't pay tax, such as children.
The current odds of any £1 Bond being paired with a prize are 21,000 to one, up from 22,000 to one after the August draw. The prize fund rate for the scheme also went up in September, from 3.8 per cent to 4.35 per cent.
Some long-time holders do win big prizes in the monthly draw. In the October 2026 draw, one person in the Overseas region won a £25,000 prize for a Bond they purchased in September 1969. A person from Brighton and Hove won a £5,000 prize for a £1 Bond they bought in July 1960. They were especially lucky as they had just £1 in Bonds going into the October draw. There were also several big wins for Premium Bonds purchased in the 1970s and 1980s.
People can check if they have won anything on the dedicated NS&I prize checker tool.
