Vanguard has warned, while 23 million people in the UK hold a combined £135.7billion worth of Premium Bonds, about 14.3 million haven’t won.
Warning for 15 million NS&I Premium Bonds holders
New data shows 14 million Premium Bonds holders have NEVER won. Vanguard has warned, while 23 million people in the UK hold a combined £135.7billion worth of Premium Bonds, about 14.3 million haven’t won.
Vanguard put this down to 15.1 million people holding £0 to £100, meaning the probability of winning is “extremely low”. It said even those with “significant amounts” have a “very slim” chance of “winning big”.
James Norton, Head of Retirement and Investments, said: “The lesson here is the power of long-term investing and compound returns. There are ways you can set yourself up for the best chance of success, without relying on luck.”
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NS&I says the April draw is expected to have close to six million tax-free prizes worth about £375m. But it has trimmed the number of higher-value prizes and increased the number of £25 ones.
For example, the number of £100,000 prizes will fall from 78 this month to an estimated 71 in April, while the number of £25,000 payouts is to be cut from 311 to 284. The number of £25 prizes is to rise from about 2.6m to just over 2.8m.
Alastair Douglas at the consumer credit website TotallyMoney said: “If you held the maximum amount of £50,000 and won the equivalent of 3.3%, that’s £1,650 tax-free.
“A higher-rate taxpayer earning the same in savings could face a bill of £743.”
Money Saving Expert, the site founded by BBC and ITV star Martin Lewis, said: “For most savers with average luck, accounts that pay interest will now be even more likely to beat Premium Bonds.
MSE added: “Though this interest rate can go up and down over time, you know exactly what you’ll earn at any given point – so it still provides more certainty than Premium Bonds, where many saving the same £1,000 would win nothing.
“Many people often think: “I’m likely to get the prize rate (or thereabouts) – and there’s a small chance of winning a million”, but this isn’t correct.
“You’re actually likely to get quite a lot less than the headline prize rate (3.6% or 3.3%), and there’s a negligible chance of winning a million.”