There are certain people who stand less chances of claiming a big prize on the draw
The personal finance expert claims there are some people who are ‘least suited’ to winning(Image: ITV)
Martin Lewis claims that some people are “least suited” to investing in premium bonds. He suggests that these people could have their money working better elsewhere to earn the most, as their chances of winning big stay slim.
The MoneySavingExpert (MSE) founder said that premium bonds are “the UK’s single most popular form of savings” and that, on average, there is “over £136bn” invested in them. But, the expert claims many people would be better off switching their investment strategy to something else entirely.
Speaking on his BBC podcast, Martin said: “Is it time for you to ditch premium bonds? The irony of these bonds for me is we tend to give them to the people they’re least suited for.”
The personal finance expert said that “most people” with typical luck will win less than the current premium bond prize. In reality, a lot of people with stakes in these bonds could “earn more just in a bog standard easy access savings,” says Martin.
What are premium bonds? Who are they good for?
A premium bond is a government-backed savings and investment product issued by National Savings and Investments (NS&I) in the UK. Your money does not earn regular interest, but is instead entered into a monthly tax-free prize draw.
Every £1 invested gives you a unique bond number and one entry into the monthly prize draw, with the maximum amount you can hold in UK NS&I Premium Bonds capped at £50,000 per person. Holding more bonds increases your overall chances of winning, but wins are never guaranteed.
Martin said that the people who are most likely to benefit from these draws are those “going to have nearly the maximum” and those who are “already going to pay tax on other savings”. People who should avoid the bonds are those “small amounts” and those who don’t pay tax, such as children.
What are the odds of winning?
The current odds of any £1 Bond being paired with a prize are 21,000 to one, up from 22,000 to one after the August draw. The prize fund rate for the scheme also went up in September, from 3.8 per cent to 4.35 per cent.
Some long-time holders do win big prizes in the monthly draw. In the October 2026 draw, one person in the Overseas region won a £25,000 prize for a Bond they purchased in September 1969.
A person from Brighton and Hove won a £5,000 prize for a £1 Bond they bought even further back, in July 1960. They were especially lucky as they had just £1 in Bonds going into the October draw. There were also several big wins for Premium Bonds purchased in the 1970s and 1980s.
People can check if they have won anything on the dedicated NS&I prize checker tool. Click here to be taken there.