More than 300,000 Premium Bonds accounts opened during the 2025-26 financial year ended the year without a single prize, fresh data from Octopus Money shows. The analysis exposes a stark gap between what savers expect from the popular National Savings and Investments (NS&I) product and the actual odds of winning.
Average wait for a prize is 3.5 years
Octopus Money found that almost a third of Premium Bonds holders expect to win a prize within the first six months of holding their bonds. In reality, the average time it takes to win a prize is three and a half years. Of the 510,061 Premium Bond accounts opened during the 2025-26 financial year, more than 60% – equivalent to 310,913 accounts – did not win a single prize before the end of the financial year.
Why many accounts go untouched
Tom Francis, head of personal finance at Octopus Money, said: “Premium Bonds hold a special place in British saving culture, and for many people they were a childhood gift rather than a conscious financial decision, which is why many accounts go untouched for years.”
Francis warned that a lack of engagement could mean missed prizes and missed opportunities. “The problem is that if you’re not checking in, not only are prizes potentially missed, but you’re probably not comparing them against what else is out there.”
Prize rate is not an interest rate
He also cautioned against the common misconception that the advertised prize rate works like an interest rate. “The prize rate might sound like an interest rate, but it isn’t: some people will win far more than it suggests, and millions will win nothing at all.”
Francis suggested that savers consider alternatives depending on their goals. “There are other options out there that might prove more reliable, such as a cash ISA if you need certainty in the short term, or an investment account if you’re thinking longer term. Premium Bonds might still have a place, but it should be an active choice rather than an accident.”
NS&I defends the product
An NS&I spokesperson responded by highlighting the product’s track record. “In the past decade, NS&I has paid out over £25 billion in over 497 million prizes.”
The spokesperson added: “All individual Premium Bond holdings remain eligible for the prize draw regardless of whether someone has made any additional deposits or withdrawals to their account. Premium Bonds are a fun, tax-free way to save with all deposits covered by the 100% government guarantee. Instead of earning interest, there are tax-free prizes ranging from £25 to £1 million. This month there were over 6.2 million tax-free prizes worth over £433 million.”
What this means for savers
The findings from Octopus Money come at a time when savers are increasingly looking for certainty amid fluctuating interest rates. While Premium Bonds offer the excitement of a potential large win, the odds of winning any prize in the short term are far lower than many expect. For those prioritising reliable returns, the data suggests that alternative savings vehicles may be more suitable.
Despite the warnings, NS&I’s figures demonstrate that prizes are regularly paid out in large numbers. The key takeaway, according to Octopus Money, is to make an informed, deliberate decision about whether Premium Bonds align with your financial goals – rather than leaving them forgotten in a drawer.
