Savings accounts guarantee a fixed rate of return, which Premium Bonds do not. At the moment (Sept 2025), some of the best easy-access savings accounts are paying around 4.5% interest.
If you invested £5,000 in a savings account at 4.5% for three years, you’d earn around £721 in interest, bringing your balance to £5,721. By comparison, Premium Bonds are estimated to give an average annual return of 3.6%, which would mean around £570 over the same period.
The trade-off is potential. With Premium Bonds, you could end up with a life-changing million-pound prize.