Martin Lewis has issued a stark warning to Premium Bonds holders, saying that unless they have at least £5,000 invested, they are likely wasting their time due to poor odds of winning anything significant.
The money-saving expert, known for his work on ITV and BBC, addressed the issue despite NS&I announcing improved prize rates rising to 4.35% from September 2026 and better odds of 21,000 to 1. Lewis remains sceptical for smaller investors.
The £5,000 rule explained
Lewis explained that Premium Bonds are typically only worth buying if you have more than £5,000, as then you have a better chance of earning closer to the published prize fund rate. He said: "With less, the odds are you will win little or nothing."
He particularly advised grandparents against gifting Premium Bonds to children. "So if you're thinking of putting £1,000 or less into premium bonds for a child, it's worth noting that with average luck our premium bonds probability calculator shows they are likely to win nothing over a year."
Alternative savings options
Lewis explained that for most people, especially those with smaller savings, traditional cash ISAs offering guaranteed 4.4% returns are far better value than Premium Bonds' lottery-style system.
For those seeking thrills, he suggested: "Put your money in top savings and then take a couple of quid out and put it in the National Lottery."
NS&I response
NS&I defended their product, saying Premium Bonds remain "one of the nation's favourite savings products" with over £403 million in recent monthly prizes.
