Millions of Premium Bond holders are waiting years for their first prize
This cautionary message arrives at an especially challenging moment for savers(Image: Natalia Gdovskaia via Getty Images)
Millions of hopeful savers dreaming of a Premium Bonds jackpot have been issued a warning over payouts.
New data from wealth manager Quilter reveals that first-time winners in 2025 had to wait an average of 3.1 years before claiming their initial prize. Almost a third (29%) endured a prolonged wait exceeding two years before getting lucky. These revelations will disappoint the tens of millions investing in the Government-backed scheme operated by National Savings & Investments (NS&I), lured by tax-free rewards and the remote possibility of landing £1million.
Yet the statistics suggest many savers are essentially tying up their money for years with minimal returns to show for it.
£40,000 required for genuine prospects
The research also exposes exactly how much investors typically require to secure a reasonable shot at winning. During 2025, the average balance for prize winners stood at £39,500.
Even those claiming the smallest £25 prizes maintained an average balance of £39,817, while £25,000 winners possessed average holdings exceeding £40,000. Interestingly, £1million jackpot winners held slightly lower average balances – though still a substantial £37,135.
The figures encompass all bonds bought since 2005, when NS&I started comprehensively recording purchase dates.
Rate reduction compounds the disappointment
This cautionary message arrives at an especially challenging moment for savers, with the Premium Bond prize rate due to drop from 3.6% to 3.3% from April onwards.
This leaves returns barely outpacing inflation, which currently stands at approximately 3%. In comparison, certain fixed savings accounts are delivering considerably higher returns – Quilter highlights rates hovering around 4.1% for three-year terms.
Investment could yield thousands in additional returns
According to Quilter, those prepared to accept a degree of risk may have achieved substantially better outcomes through investing rather than holding out for years in pursuit of a prize.
Their research reveals:
- £10,000 invested with a 5% return could have generated growth of £1,346 over the typical three-year period
- £39,817 – representing the average Premium Bond holding – might have yielded £5,316 during the same timeframe
These figures don’t account for the possibility of even greater returns over extended periods thanks to the effect of compounding.
Ian Futcher, financial adviser at Quilter plc, suggested the research exposes an increasing issue with how British savers are managing their money. He said: “Premium Bonds are held very close to the nation’s heart but help to underscore the scale of the cash savings problem the UK has.
“The allure of high value prizes, alongside tax free winnings, means people are putting an inordinate amount of money into Premium Bonds when they would perhaps be better off parking their cash elsewhere.
“Last year’s first-time winners had to wait over three years on average before they received that prize, while the average holding for prize winners in 2025 stands close to a staggering £40,000. In that time, and provided their financial situation allows, significant gains could be made by investing and offers a much greater potential to grow wealth than Premium Bonds can.
“Even for shorter-term cash there are more options available. The Premium Bond prize rate is being cut at the same time as fears around a fresh inflation spike grow. “Actively managing short-term savings via a cash platform means you can lock in real returns above inflation, rather than hold out hope you win a prize, let alone win one of the high value prizes.”