The average Premium Bonds holder who has never won a prize could have more than doubled their money elsewhere, according to a new analysis by AJ Bell. The typical saver with no wins holds £128.91 in bonds for an average of 8.1 years, missing out on potential growth.
Potential Returns from Alternative Savings
AJ Bell calculated that over 8.1 years, that £128.91 could have grown by 17% in a cash savings account to £150.82. If invested in a global tracker fund, it could have surged by 162% to £338.30. For someone with £5,000, cash savings would yield £5,850, while investment could produce £13,122.
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.”
Advice for Bondholders
Coles 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.”
Recent Jackpot Winners
This month, two Premium Bonds holders from Reading and Warwickshire each won the £1 million jackpot. The first winning bond number 250TP871786 is held by someone from Reading who purchased the bond in July 2015 and holds £49,931. The second bond number 217AV429216 is held by someone in Warwickshire who bought the bond in January 2014 and holds £14,000. These are the second jackpot winner from Reading and the tenth from Warwickshire.
