National Savings and Investments customers are being told to check their accounts and savings
Premium Bonds holders are being warned to check their accounts on Wednesday. National Savings and Investments customers are being told to check their accounts and savings – ahead of the Labour Party Autumn Budget.
Kevin Mountford, co-founder of savings provider Raisin UK, said: “With the Budget approaching, it’s a good time for Premium Bonds holders to take stock of how their savings are really performing.”
He said: “While the idea of a big win is appealing, the odds of any single £1 Bond winning in a given month are 21,000 to one, meaning most savers earn nothing at all. If you’ve held Bonds for more than a year without a win, it might be worth reviewing whether that money could work harder elsewhere.”
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He said: “You can now find easy access accounts paying around 4.5 percent, a guaranteed return compared to the long-shot nature of Premium Bonds. Premium Bonds are fun, but they’re not a plan, and in today’s market, guaranteed interest can deliver far more.”
Christian Harris, chief analyst at investment comparison site Investing.co.uk, said: “If it’s been several draws, upwards of six months, and you’ve won nothing, then it could be time to consider changing tact.”
The expert said: “Another option is to shift a portion of your funds into short-dated bonds or money-market funds to get steady, low-drama growth.”
Mr Mountford said: “They still have their place for those who value the thrill of a possible win and the peace of mind of 100 percent capital security.
“But if you’re saving for a goal such as a house deposit or retirement fund, relying on luck isn’t the most efficient way to grow your money.
“For many, a mix can make sense: keep a small amount in Premium Bonds for fun, and move the rest into a fixed or easy access savings account with a competitive rate.”
Mr Harris said: “I don’t expect significant changes to Premium Bonds to be announced.” He also added a word of caution to people thinking of moving their savings into stocks and shares.
The expert said: “I’d be cautious about switching funds to the stock market currently because we’re seeing bubble-like territory, particularly in the AI space, which makes investments there particularly high risk.”