The average amount saved in Premium Bonds by someone who has never won is £128.91
£338 warning issued to millions of NS&I Premium Bonds holders
Premium Bonds holders who have never won a prize could have more than doubled their money elsewhere. The average amount saved in Premium Bonds by someone who has never won is £128.91, while the typical length of time unsuccessful bonds are held for is 8.1 years.
AJ Bell has warned that over this time, that £128.91 could have grown 17% in cash savings into an average of £150.82. If they’d invested that money into a global tracker fund for that period, that £128.91 could have grown by 162% to £338.30.
If the person had started with £5,000, this would have grown into £5,850 in cash savings, or £13,122 if the money was invested. Sarah Coles, head of personal finance at AJ Bell, said: “The bonds don’t pay any interest, so if you don’t win, you don’t get a return on your money. It means that over time, you’re losing spending power after inflation, and the impact can be shocking.
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She added: “There will always be people who love Premium Bonds, and there will be those who have never won but still cling to the hope that their lucky day might be around the corner.
“However, if you’ve left money in these bonds for years, it’s worth considering how much you’ve won overall, and asking yourself whether you have kept pace with inflation, or whether your money could be working harder for you in savings or investments.”
This month, two Premium Bonds holders from Reading and Warwickshire are celebrating an unforgettable summer after each winning the £1 million Premium Bonds jackpot.
The first Premium Bonds £1 million winning Bond number this month is 250TP871786 and is held by someone from Reading.
They purchased the winning Bond in July 2015 and hold £49,931. They are the second jackpot winner from Reading.
The second Premium Bonds £1 million jackpot Bond number is 217AV429216 and is held by someone in Warwickshire.
They purchased their winning Bond in January 2014 and hold £14,000. They are the tenth person to win the £1 million jackpot in Warwickshire.