Premium Bond holders could face a multi-year wait for any prizes from National Savings and Investments (NS&I) as analysts suggest savers could "be better off putting cash elsewhere".
Unlike traditional savings accounts, Premium Bonds savers do not accrue interest in a regular way but instead are enrolled in a monthly cash prize draw.
In 2025, Premium Bond holders endured waits exceeding three years on average before securing their inaugural prizes, according to fresh data obtained by wealth manager Quilter through a freedom of information request.
The figures reveal that first-time winners typically waited 3.1 years before receiving any payout from NS&I's popular savings product.
Those who claimed prizes last year held an average of £39,500 in bonds, underscoring the considerable financial commitment needed simply to participate meaningfully in the monthly prize draws.
Nearly a third of Premium Bond holders who won their first prize last year – some 29 per cent – had been waiting more than two years for that initial win.
Even those collecting the minimum £25 prize held an average of £39,817 in bonds. Winners of £25,000 prizes maintained the largest typical holdings, exceeding £40,000.
Premium Bonds savers can check for prizes on the NS&I prize checker app | NS&ILATEST DEVELOPMENTS
NS&I app being used to make Premium Bonds investments | NS&ICuriously, millionaire jackpot winners actually held less on average than other prize recipients, though their holdings still amounted to £37,135.
With the prize rate set to fall from 3.6 per cent to 3.3 per cent from April, savers face diminishing returns that only marginally exceed the current three per cent inflation rate. Quilter suggests consumers might find better value elsewhere for their short and medium-term savings.
Cash management platforms offering access to competitive accounts through a single interface present one alternative, with the best three-year fixed rate on Quilter's CashHub currently paying 4.1 per cent
For those with longer investment horizons, the wealth manager points to potentially superior returns through investing. A £10,000 sum generating a five per cent medium-risk return could have produced £1,346 over the same three-year period that first-time Premium Bond winners typically waited..
How have Premium Bonds compared to the Ftse 100? | LIGHTYEAR The average Premium Bond holding of £39,817 invested at the same five per cent return could have generated £5,316 over that three-year window, with higher-risk strategies and longer timeframes potentially delivering even greater gains through compounding.
Ian Futcher, financial adviser at Quilter, said: "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. The allure of high value prizes, alongside tax free winnings, means people are putting an inordinate amount of money into Premium Bonds when they would perhaps be better off parking their cash elsewhere.
"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 and offers a much greater potential to grow wealth than Premium Bonds can.
"Even for shorter-term cash there are more options available. The Premium Bond prize rate is being cut at the same time as fears around a fresh inflation spike grow. 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 along win one of the high value prizes."