Premium Bonds Holders Receive Crucial 3-Year Notice
Premium Bonds holders have received a crucial three-year notice about how long it can take to win a first prize. The Government-backed product is run by National Savings and Investments.
Bonds cost £1 and enter monthly draws for tax-free prizes. Prizes range from £25 up to £1 million.
Quilter data and waiting times
Wealth manager Quilter obtained data through a freedom of information request. It found first-time winners waited an average 3.1 years before their first prize in 2025.
Quilter said 29 percent of first-time winners waited more than two years. For all prize winners in 2025, the average holding was £39,500.
Holdings and prize levels
Under the rules, no individual can hold more than £50,000 in Premium Bonds. Quilter found those who won the minimum £25 had an average holding near £39,817.
Winners of £25,000 had the largest average holdings, above £40,000. Surprisingly, the £1 million jackpot winners held the least on average at £37,135.
Reaction and implications
Ian Futcher, a Quilter financial adviser, warned savers may be locking large amounts into Premium Bonds. He said investing could offer more growth than Premium Bonds for some people.
Quilter argued the average prize-holder balance underscores the cash needed to raise chances. It urged savers to consider alternatives if their financial situation allows.
Rate change and context
NS&I serves more than 24 million customers. Over 22 million customers hold Premium Bonds.
The Premium Bond prize rate will fall from 3.6 percent to 3.3 percent in April. At the time of writing, inflation stood at 3 percent.
The data gives savers fresh context for deciding where to place cash. Premium Bonds holders should weigh the odds and consider financial advice.
