NS&I Premium Bond Holders Urged to Consider Alternatives as Research Reveals Long Wait Times
New research from financial services firm Quilter has delivered a stark warning to National Savings and Investments (NS&I) customers, suggesting their cash might be better off elsewhere. The study highlights that first-time winners of NS&I's popular Premium Bonds product typically waited an average of 3.1 years before receiving any payout, raising questions about the efficiency of this savings vehicle.
Substantial Holdings Required for Prize Wins
The data reveals that those who claimed prizes in 2025 held an average of £39,500 in bonds. Nearly a third of Premium Bond holders who won their first prize last year—approximately 29 percent—had been waiting more than two years for that initial win. For all winners in 2025, the average required holding stood at £39,500, underscoring the significant amount of money needed to maximize chances of winning a prize.
Even those winning just £25 in 2025 had an average holding of £39,817, while £25,000 prize winners boasted the largest average holding of over £40,000. The £1 million jackpot prize saw the lowest average holding, but this still amounted to a substantial £37,135.
Expert Analysis and Recommendations
Ian Futcher, a financial adviser at Quilter, commented on the findings, stating, "Premium Bonds are held very close to the nation’s heart but help to underscore the scale of the cash savings problem the UK has." He emphasized that the allure of high-value prizes and tax-free winnings often leads people to allocate excessive funds to Premium Bonds when alternative options might yield better returns.
Futcher further explained, "Last year’s first-time winners had to wait over three years on average before they received that prize, while the average holding for prize winners in 2025 stands close to a staggering £40,000. In that time, and provided their financial situation allows, significant gains could be made by investing, offering a much greater potential to grow wealth than Premium Bonds can."
Exploring Better Savings Strategies
The research also points to concerns about the Premium Bond prize rate being cut amid growing fears of a fresh inflation spike. Futcher advises savers to consider more active management of short-term savings through cash platforms, which can lock in real returns above inflation rather than relying on the chance of winning a prize.
He concluded, "Actively managing short-term savings via a cash platform means you can lock in real returns above inflation, rather than hold out hope you win a prize, let alone win one of the high-value prizes." This insight encourages savers to reassess their financial strategies and explore diversified investment avenues for optimal growth.
