Approximately two out of every three Premium Bonds owners have never received a reward.
New Approach to the Premium Bond Lottery
Britons love Premium Bonds for their lottery-style draws, offering two £1 million jackpots each month. The tax-free prizes are a big draw, especially for those with substantial savings. However, a shocking revelation from AJ Bell's Freedom of Information request to National Savings and Investments reveals that an astonishing 66% of current Premium Bond holders have never won a prize!
Here's a whopping statistic: a grand total of 14.4 million Premium Bond holders have never tasted the sweet taste of victory! To put things in perspective, the total funds parked in these bonds amount to an astronomical £127.7 billion, with an average holding of a mere £5,406. The odds of winning a prize in the draw are 22,000 to one, but it seems many are still left empty-handed.
Interestingly, the average holding for the 5.1 million Premium Bond holders who won a prize in the past 12 months is a hefty £23,397, nearly quadruple the average holding! Also noteworthy, four out of five winners during the same period managed to win more than once.
Millions of lower-value prizes, such as £50 and £100, are handed out regularly, and they now account for a larger proportion of winning prizes than the lowest £25 prize. In 2024, the majority of Premium Bond prizes were still worth £100 or less.
However, the number of higher-value prizes has apparently decreased. In April's draw, there were four fewer £100,000 prizes compared to February, bringing down the count from 82 to 78. There were 157 £50,000 prizes in April, 16 fewer than in February, along with 15 fewer £25,000 prizes and 39 fewer £10,000 ones.
In a nutshell, while dreams of massive £1 million jackpots keep fueling the popularity of Premium Bonds, chances of winning are slim for most participants. If you're after steady returns, it may be wiser to park your savings in a high-interest easy-access account. After all, as the odds suggest, the lottery might not always be in your favor!
Sources:
[1] Go from ‘hodling’ to shopping sprees! Over 22 million Britons invest in Premium Bonds, but only a third win a prize | This is Money[2] Lee Boyce: I'm 'hodling' Premium Bonds despite a 0% return in two years | This is Money[3] Premium Bond prize data from February 1994 onwards (Freedom of Information request to National Savings and Investments by stockbroker AJ Bell)
- The staggering revelation that 66% of Premium Bond holders have never won a prize highlights the fact that investing in Premium Bonds, although popular due to its lottery-style draws, may not guarantee a win.
- The average holding of Premium Bond holders who have never won a prize is merely £5,406, while those who have won in the past 12 months have an average holding of £23,397.
- Personal finance experts might suggest that rather than relying on Premium Bonds for steady returns, it may be wiser to invest in high-interest easy-access accounts, considering the low odds of winning.
- In the world of finance, where investments are key to building a comfortable lifestyle, it's essential to be aware of the facts and make well-informed decisions regarding savings, pensions, bonds, and other forms of investment.
- Amidst the fashion-and-beauty or personal-finance concerns, it's important to remember that smart investment strategies can significantly impact one's overall lifestyle.
- While the allure of high-value prizes like £1 million jackpots keeps the Premium Bond Lottery exciting, the reality is that the odds are often against the average investor, making it more of a gamble than a reliable investment option.
