Is it time to ditch your Premium Bonds and bank your money?
The vast majority of jackpots go to those holding over £25,000, making this savings product far less rewarding than putting the money into the bank with a high-interest account.
Why do so many people give children Premium Bonds?
Premium Bonds are only a decent bet if
- You've a big whack in, say £10,000+
- & you pay tax on savings interest
Most kids have/do neither. With £1,000 in over a year with typical (median average) luck you'll win nothing — Martin Lewis (@MartinSLewis) December 10, 2024
That's before bond holders factor in the cuts in the prize pot in recent months, with fewer big wins to go round.
How many Premium Bonds winners are there each month?
There will be an estimated 75 prizes of £100,000 for future draws, down from 79. Meanwhile, the number of £50,000 prizes will be reduced to 151 from 159.
The number of £25,000 prizes will fall to 302 from 317, and £10,000 prizes to 754 from 792. However, the number of £1 million prizes will remain the same, at two.
The number of £25 prizes is also set to increase for August's draw, with an estimated 2.56 million available, up from 2.19 million.
How many people have Premium Bonds?
Premium Bonds have become a national savings staple, with more than 24 million people holding over £130 billion in total.
A survey of 2,000 UK adults by Octopus Money reveals the main reason for investing in Premium Bonds is the perceived lack of risk in losing the initial investment, followed by the tax-free status of a win and the possibility of a large return.
While Premium Bonds do offer the chance of winning prizes, the analysis suggests Britain's favourite savings product is failing to deliver real value for everyday savers - most never win anything at all and the odds are highly skewed in favour of those with the biggest holdings.
ERNIE (Electronic Random Number Indicator Equipment) was created by the team who built Colossus, the WWII code breaker.
The first ERNIE used neon tubes to generate random numbers and took a full 10 days to complete a Premium Bonds draw!🖥️ pic.twitter.com/qBhWSsnVsx — nsandi (@nsandi) June 18, 2025
In the past five years, 94% of Premium Bond jackpot winners held over £10,000, while three quarters (75%) held over £25,000. In 2024, 88% of Premium Bond prize winners took home less than £2,000 and just 0.32% of all winners won more than £10,000.
Less than a fifth of UK adults (19%) believe they could generate better long-term results elsewhere, while the same proportion don't understand how Premium Bonds work - indicating a limited understanding of the saving product's actual value.
Over £4.25 billion has been held in Premium Bond accounts that have had no activity in the past decade - earning zero interest.
Ruth Handcock, CEO of Octopus Money says: 'While products like Premium Bonds may work well for some, others are missing out on strategies that could grow their wealth and deliver stronger returns over time.
Recommended reading:
"Premium Bonds are unlikely to outpace inflation, so your money may seem 'safe' but it's quietly shrinking in value over time.
"The truth is that millions of people could be getting more from their money, but they need access to affordable, personalised advice to help them figure out what's right for them - something that only 9% of people in the UK currently receive.
"Without it, they stick with what feels familiar or they're left in financial limbo, unsure how to take that first step.'
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