The typical Premium Bond holder waits three and a half years before winning their first prize, fresh analysis has revealed.
Research by financial planning app Octopus Money found around one in three Premium Bond holders expect to win within their first six months despite the average wait being significantly longer.
More than 60 per cent of the 510,061 Premium Bond accounts opened during the 2025-26 financial year did not win a single prize before the year ended.
The findings raise questions over Britain’s most widely held savings product, which is managed by Treasury-backed National Savings and Investments (NS&I).
Around 22.5 million people currently hold Premium Bonds.
The research suggests many new bondholders are waiting years before receiving a prize despite expectations of an earlier return.
Each £1 Premium Bond is entered into a monthly prize draw offering tax-free prizes ranging from £25 to £1million.
Savers can hold a maximum of £50,000 in Premium Bonds.
Premium Bonds holders can check to see if they have won a prize via the Premium Bonds prize checker app | NS&I
Unlike traditional savings accounts, Premium Bonds do not pay interest.
Instead, NS&I publishes a prize rate, currently 3.8 per cent, to indicate the average return that could be expected across all bondholders.
However, Tom Francis, head of financial planning at Octopus Money, said: “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.”
He said bondholders who rarely check their accounts also risk overlooking better returns available elsewhere.
How have Premium Bonds compared to the Ftse 100? | LIGHTYEAR
Mr Francis said: “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.”
Octopus Money’s analysis also found there are 2.7 million unclaimed Premium Bond prizes worth a combined £121.9million.
The research further revealed that £6.3billion is held in Premium Bond accounts that have had no deposits, withdrawals or updated contact details for at least 10 years.
The findings suggest millions of people may have forgotten they still own Premium Bonds.
The analysis comes after a period of significant disruption at NS&I.
Chief executive Dax Harkins stepped down in March following what the organisation described as an “operational failure”, which left thousands of bereaved families waiting for more than £470million from deceased relatives’ accounts.
NS&I has said those outstanding payments are not expected to be fully resolved until the end of June 2027.
The organisation has also faced criticism over Project Rainbow, its £3billion IT modernisation programme launched in 2020.
The programme is at least £1.3billion over its original budget and has been delayed by four years until 2028.
A public accounts committee report criticised NS&I’s leadership for creating a “good news culture” that discouraged staff from raising concerns.
An NS&I spokesman said: “Premium Bonds are a fun, tax-free way to save with all deposits covered by the 100 per cent Government guarantee.”