Latest news with #RuthHandcock
South Wales Guardian
01-07-2025
- Business
- South Wales Guardian
Is it time to ditch your Premium Bonds and bank your money?
The main issue is that the savings held in Premium Bonds don't accrue interest, as with regular bank accounts. New figures obtained via a Freedom of Information (FOI) request to NS&I show that Premium Bond holders are waiting 3.5 years to win a prize, and when they do win, 9 out of 10 walk away with less than £2,000. 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 That's before bond holders factor in the cuts in the prize pot in recent months, with fewer big wins to go round. 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. 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!🖥️ 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: Martin Lewis on the £20,000 cash rumoured ISA changes The banking rule changes that could see millions lose high-interest accounts Food prices rocket as inflation leaves shoppers counting the pennies "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.'
North Wales Chronicle
01-07-2025
- Business
- North Wales Chronicle
Is it time to ditch your Premium Bonds and bank your money?
The main issue is that the savings held in Premium Bonds don't accrue interest, as with regular bank accounts. New figures obtained via a Freedom of Information (FOI) request to NS&I show that Premium Bond holders are waiting 3.5 years to win a prize, and when they do win, 9 out of 10 walk away with less than £2,000. 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 That's before bond holders factor in the cuts in the prize pot in recent months, with fewer big wins to go round. 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. 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!🖥️ 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: Martin Lewis on the £20,000 cash rumoured ISA changes The banking rule changes that could see millions lose high-interest accounts Food prices rocket as inflation leaves shoppers counting the pennies "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.'
The Independent
18-06-2025
- Business
- The Independent
The real odds of winning a Premium Bonds prize revealed as millions are ‘missing out'
The real odds of winning a prize through Premium Bonds has been revealed as a personal finance expert weighs in on how worthwhile the popular savings option really is. Premium Bond holders are waiting an average 3.5 years to win a single prize, new analysis from Octopus Money has found. In nine out of ten of these cases, this prize is worth less than £2,000. These findings mean savings in Premium Bonds are likely to be 'quietly shrinking in value,' Octopus Money CEO Ruth Handcock says, calling into question whether this popular financial product is the best option for savers. Millions of people in the UK now have some savings in Premium Bonds, with the government-backed scheme holding more than £127 billion across 24 million accounts. The investment product from National Savings and Investment (NS&I) provides savers with a unique opportunity to win cash prizes rather than accrue interest as with a regular savings account. Each month, every account holder is entered into a draw with prizes ranging from £25 to £1 million. Each £1 entered has a 22,000-to-one chance of winning, with £25 being the minimum and £50,000 the maximum. The new analysis also reveals how much is optimal to hold in Premium Bonds to boost the chance of winning a prize. Over the past five years, 94 per cent of jackpot winners held over £10,000, while three quarters of them held over £25,000. For those who do win prizes, it is exceedingly rare that this will be anywhere close to the top prize. In 2024, 88 per cent of prize winners won less than £2,000, while only 0.32 per cent won over £10,000. An accompanying survey of 2,000 Premium Bond account holders found that the main reason for choosing the product is the perceived lack of risk, followed by the tax-free status of a win and the possibility of a large return. However, over £4.25 billion has been held in Premium Bond accounts that have had no activity over the past decade. This means the money has accrued zero interest during this time, which it would have done in a regular savings account. Ruth Handcock, CEO of Octopus Money commented: '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. 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 per cent of people in the UK currently receive. 'We want to empower people with the confidence to explore options that help them achieve their long-term goals – not just rely on products that feel 'safe' or like a 'quick win' but fall short in the long run.' An NS&I spokesperson said: 'Premium Bonds are one of the nation's favourite savings products, offering bond holders the excitement of the possibility of winning tax-free prizes each month while knowing their investment is safe and secure, backed by a 100 per cent government guarantee. 'Every Premium Bonds number has a separate and equal chance of winning a prize each month, however the more Bonds you have, the better your chances of winning, and the quicker you may win a prize.'
