Data obtained by wealth manager Quilter shows first-time winners in 2025 waited an average 3.1 years before landing their first prize. And nearly a third – 29% – endured a wait of more than two years before finally getting lucky. The findings will come as a blow to the tens of millions who pour cash into the Government-backed scheme run by National Savings & Investments (NS&I), attracted by tax-free prizes and the slim chance of scooping £1million.

But the figures suggest many are effectively locking away cash for years with little to show for it.

£40,000 needed for a realistic chance

The analysis also reveals just how much savers typically need to stand a decent chance of winning. In 2025, the average holding for those who won a prize was £39,500.

Even those landing the smallest £25 prizes held an average £39,817, while £25,000 winners had average holdings of over £40,000. Surprisingly, £1million jackpot winners had slightly lower average holdings – but still a hefty £37,135.

The data covers all bonds purchased since 2005, when NS&I began fully recording purchase dates.

Rate cut adds to the pain

The warning comes at a particularly bad time for savers, with the Premium Bond prize rate set to fall from 3.6% to 3.3% from April.

That leaves returns only marginally ahead of inflation, currently sitting at around 3%. By contrast, some fixed savings deals are offering significantly more – with Quilter pointing to rates of around 4.1% for three-year accounts.

Investing could deliver thousands more

Quilter says those willing to take on some risk could have been far better off investing instead of waiting years for a prize.

According to its analysis:

£10,000 invested at a 5% return could have grown by £1,346 over the typical 3-year wait
£39,817 – the average Premium Bond holding – could have returned £5,316 in the same period

That is before factoring in the potential for even higher returns over longer periods due to compounding.

Ian Futcher, financial adviser at Quilter plc, said the findings highlight a growing problem with how Britons manage their savings.

He said: “Premium Bonds are held very close to the nation’s heart but help to underscore the scale of the cash savings problem the UK has. The allure of high value prizes, alongside tax free winnings, means people are putting an inordinate amount of money into Premium Bonds when they would perhaps be better off parking their cash elsewhere.

“Last year’s first-time winners had to wait over three years on average before they received that prize, while the average holding for prize winners in 2025 stands close to a staggering £40,000. In that time, and provided their financial situation allows, significant gains could be made by investing and offers a much greater potential to grow wealth than Premium Bonds can.

“Even for shorter-term cash there are more options available. The Premium Bond prize rate is being cut at the same time as fears around a fresh inflation spike grow. “Actively managing short-term savings via a cash platform means you can lock in real returns above inflation, rather than hold out hope you win a prize, let alone win one of the high value prizes.”

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