Premium Bonds holders with £1 or more are being urged to check their accounts this Wednesday as National Savings and Investments (NS&I) prepares for the upcoming Labour Party Autumn Budget. Experts recommend reviewing whether Premium Bonds remain the best option in today’s financial climate.
Kevin Mountford, co-founder of savings platform Raisin UK, encourages Premium Bonds holders to evaluate how their money is performing. “The appeal of a big win is understandable, but the odds of winning on any single £1 Bond in a given month are around 21,000 to one,” he explained. “Most savers earn no return at all. If you haven’t won anything after holding Bonds for over a year, it might be time to consider alternatives that could deliver more consistent growth.”
Mountford highlighted that easy access savings accounts are now offering around 4.5% interest — guaranteed returns that contrast sharply with the gamble of Premium Bonds. “Premium Bonds are enjoyable, but they shouldn’t be the main component of a savings plan. With current market rates, guaranteed interest yields can be significantly better,” he noted.
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Christian Harris, chief analyst at investment comparison site Investing.co.uk, echoed this advice. “If you’ve gone six months or more without a win, reconsidering your strategy may be wise,” he said. Harris also suggested diversifying by moving some funds into short-dated bonds or money-market funds for steady, low-risk growth.
Mountford acknowledged that Premium Bonds retain value for those who enjoy the excitement of potential prizes combined with 100% capital security. “However, if you’re saving for important goals like a house deposit or retirement, relying on luck isn’t efficient,” he said. He recommended keeping a small amount in Premium Bonds for fun, while placing the majority in competitive fixed or easy access savings accounts.
Harris does not anticipate major changes to Premium Bonds in the forthcoming Budget but offered caution regarding transferring savings into stocks and shares. “Investments in sectors like AI are entering bubble-like phases, which increases risk. It’s best to be careful right now,” he advised.
In summary, Premium Bonds can still be part of a savings portfolio, but with current financial products offering more reliable returns, savers should take this opportunity to reassess where their money works hardest.