New analysis from Octopus Money reveals a growing disconnect between what savers expect from Premium Bonds and what they actually get.
Almost a third of Premium Bond holders expect to win a prize in the first six months1, however new figures obtained via a Freedom of Information (FOI) request show that in 2024, the average duration before winning a first prize was 3.5 years.2
Premium Bonds have become a national savings staple, with more than 24 million people holding over £130 billion in total.3 A survey of 2,000 UK adults by Octopus Money reveals the main reason for investing in Premium Bonds is the perceived lack of risk in losing the initial investment, followed by the tax-free status of a win and the possibility of a large return.4
While Premium Bonds do offer the chance of winning prizes, the analysis suggests Britain’s favourite savings product is failing to deliver real value for everyday savers – most never win anything at all and the odds are highly skewed in favour of those with the biggest holdings.
In the past five years, 94% of Premium Bond jackpot winners held over £10,000, while three quarters (75%) held over £25,000.5
For those who do eventually win, the prize amount is often modest. In 2024, 88% of Premium Bond prize winners took home less than £2,000 and just 0.32% of all winners won more than £10,000.6
Less than a fifth of UK adults (19%) believe they could generate better long-term results elsewhere, while the same proportion don’t understand how Premium Bonds work – indicating a limited understanding of the saving product’s actual value.7
Meanwhile, 18% of UK adults said they invested in Premium Bonds because a family member recommended them – suggesting that generational habits and tradition often guide financial decisions more than understanding or professional advice.8
Over £4.25 billion has been held in Premium Bond accounts that have had no activity in the past decade – earning zero interest, eroding individual wealth and missing the opportunity to grow through more effective investment vehicles.9
As economic conditions continue to put pressure on household finances, experts at Octopus Money highlight the urgent need for accessible, personalised money advice to help people make more informed investment choices that match their long-term goals.
Ruth Handcock, CEO of Octopus Money commented: “While products like Premium Bonds may work well for some, others are missing out on strategies that could grow their wealth and deliver stronger returns over time. Premium Bonds are unlikely to outpace inflation, so your money may seem “safe” but it’s quietly shrinking in value over time.
The truth is that millions of people could be getting more from their money, but they need access to affordable, personalised advice to help them figure out what’s right for them – something that only 9% of people in the UK currently receive. Without it, they stick with what feels familiar or they’re left in financial limbo, unsure how to take that first step.
We want to empower people with the confidence to explore options that help them achieve their long-term goals – not just rely on products that feel ‘safe’ or like a ‘quick win’ but fall short in the long run.”
End
Notes to Editor
1 Research conducted by Opinium, among a sample of 2,000 Nat Rep UK adults. The data was collected between 13.05.2025-16.05.2025
2 Freedom of Information request submitted to NS&I by Octopus Money (FOI Ref: 2025.03.04), response received 17 April 2025.
3 Data from Money Saving Expert
4 Research conducted by Opinium, among a sample of 2,000 Nat Rep UK adults. The data was collected between 13.05.2025-16.05.2025
5 Freedom of Information request submitted to NS&I by Octopus Money (FOI Ref: 2025.03.04), response received 17 April 2025.
6 Freedom of Information request submitted to NS&I by Octopus Money (FOI Ref: 2025.03.04), response received 17 April 2025.
7 Research conducted by Opinium, among a sample of 2,000 Nat Rep UK adults. The data was collected between 13.05.2025-16.05.2025
8 Research conducted by Opinium, among a sample of 2,000 Nat Rep UK adults. The data was collected between 13.05.2025-16.05.2025
9 Freedom of Information request submitted to NS&I by Octopus Money (FOI Ref: 2025.03.04), response received 17 April 2025.
Premium Bond accounts with ‘no activity’ are defined as accounts that have had no withdrawals, deposits or updated contact details
Contact:
octopusmoney@headlandconsultancy.com
About Octopus Money:
At Octopus Money, we’re building the future of financial advice – helping more people get the support they need to plan for the life they want.
We’re a new kind of advice business – combining the best of humanity, smart technology and investment expertise. We work with some of the UK’s leading employers to give over 200,000 employees access to 1-to-1, personalised help through the workplace.
We also partner with financial service brands to license our award-winning methodology, training and technology. Our platform enables them to offer holistic, regulated financial planning to more customers, at a lower cost than ever before.
Part of the Octopus Group and a certified B Corp, Octopus Money is committed to doing the right thing for customers, advisers and the future we all share.
