Average time it takes to win on Premium Bonds revealed – here’s where you can grow your money faster

THE average time it takes to win on Premium Bonds has been revealed – and it’s probably far longer than you think. Almost a third of holders expect to win a prize in the first six months, according to Octopus Money. But the reality is that most people have to wait three and a half years on average to win anything in the prize draw, its analysis found. Of the 510,061 Premium Bond accounts opened during the 2025-26 financial year, more than 60% (310,913) did not win a single prize before the end of the financial year. Sign up for the Money newsletter Thank you! Premium Bonds, which are run by the National Savings and Investments (NS&I) are the most popular savings product in the UK, held by around 22.5million people. Meanwhile, over £6.3billion has been sitting untouched in Premium Bonds accounts for a whole decade, with no deposits, withdrawals or update to contact details by holders. It comes after NS&I announced a cut to the Premium Bond prize-fund rate from April this year, slashing it from 3.6% to 3.3%. Experts are warning that many savers may be simply holding their money in Premium Bonds without comparing what other options are out there that could get you a higher return. 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. “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. Most read in Money “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.” How do Premium Bonds work? PREMIUM Bonds are the UK's most popular savings product, held by around 22.5million people. Each bond is worth £1, and each one is entered into a monthly prize draw. You can then win tax-free prizes ranging from £25 to £1million. You can hold up to £50,000 in Premium Bonds. Premium Bonds don’t earn interest, unlike traditional savings accounts. Instead, there’s an annual prize fund rate that shows you the average return you could get for your money. This is currently 3.8%. The odds of winning are currently 22,000 to 1 for every £1 Bond entered in the monthly prize draw. Anyone over 16 who has a UK bank account can buy Premium Bonds. Where could you grow your money faster? Tom adds: “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.” A Cash ISA is one of the best options for savings as it shields them from tax, with an annual allowance of £20,000. High street banks are currently offering up to 5% interest in easy-access savings accounts, which can also be a good option if you want to save over the short term. If you still want the thrill of having the chance to win prizes, however, some UK banks offer savings account where you can store your money and earn interest while also entering draws. Santander currently has a First Home Saver prize draw, giving anyone with the savings account the chance to win £10,000. The draw is open to anyone with a Santander First Home Saver between May and December 2026. Every £100 increase in your balance equals one entry into the prize draw. Digital bank Chip has a Prize Savings account, with a monthly draw with £10,000 jackpot up for grabs. You can access your money any time through the savings account, and the bank gives out thousands of prizes every month. Comment now