An analysis reveals that individuals holding Premium Bonds without winning a prize could have potentially doubled their money through different investment options.

On average, those who have never received a prize in Premium Bonds have saved £128.91, with an average holding period of 8.1 years.

However, a recent study by AJ Bell suggests that instead of remaining stagnant, this sum could have grown to around £150.82 if invested in cash savings, and even more significantly to £338.30 if put into a global tracker fund.

For instance, starting with £5,000 could have resulted in £5,850 through cash savings or a remarkable £13,122 with investments over the same period.

The analysis also indicates that with a 47.9% rise in prices during the past 8.1 years, individuals would now need £191 to maintain the same purchasing power. It is noted that out of 14.3 million holders who have never won a prize, they constitute 62% of all Premium Bond holders.

Currently, over 22 million individuals participate in Premium Bonds, with odds of winning a prize with a single £1 bond standing at 22,000 to 1.

Premium Bonds, a savings option by NS&I, offers a unique prize draw mechanism instead of traditional interest accrual on savings.

With a range of prizes from £25 to £1 million, Premium Bonds have a maximum savings limit of £50,000, with each £1 invested corresponding to a distinct bond number.

Sarah Coles, head of personal finance at AJ Bell, emphasizes the importance of evaluating the returns on Premium Bonds, noting the potential impact of inflation on savings over time.

She suggests that individuals review whether their money could be better utilized in savings or investments rather than relying solely on Premium Bonds for potential returns.

To check for prize wins, individuals can utilize the NS&I online prize checker tool or the Premium Bonds prize checker app.

An NS&I spokesperson highlights the benefits of Premium Bonds as a savings product offering the opportunity for tax-free prizes while ensuring the safety and security of invested funds.

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