Premium Bonds alert: Savers have 'vanishingly small chance of winning' money from NS&I

Analysts are warning Premium Bond savers that they could more than doubled their money if they had opted to invest their money elsewhere.New research from investment platform AJ Bell has uncovered that nearly two-thirds of Premium Bond holders have yet to receive any winnings whatsoever.Data obtained through a Freedom of Information (FoI) request reveals that 14.3 million people holding the popular savings product have never secured a prize, representing 62 per cent of all bondholders.On average, those who have never won have kept their bonds for 8.1 years, waiting in vain for ERNIE to select their numbers in the monthly prize draw.Those who have never claimed a prize hold an average of £128.91 in Premium Bonds. Over the 8.1-year period these bondholders have typically waited, inflation has climbed by 47.9 per cent.This means their original investment would now need to be worth £191 simply to retain the same purchasing power it had when first deposited.Since Premium Bonds pay no interest to those who fail to win, these holders have watched their money's real value steadily diminish.Without any prizes to offset rising prices, their savings have effectively shrunk in terms of what they can actually buy.LATEST DEVELOPMENTSHMRC alert: Thousands could be owed £2,200 in unclaimed savings - are you eligible?Major bank launches free £300 cash bonus in new savings deal - are you eligible?Major high street bank launches market-leading savings account offering eight per cent interestHad these bondholders placed their £128.91 into a standard cash savings account over the same timeframe, their money could have increased by 17 per cent to approximately £150.82.Putting that same sum into a global tracker fund during the 8.1-year period could have delivered growth of 162 per cent, transforming the original amount into £338.30.A £5,000 investment in cash savings could have reached £5,850, while the same amount in a global tracker might have grown to £13,122.Sarah Coles, head of personal finance at AJ Bell, said: The Premium Bonds odds are stacked against you. In any given month, each bond has a 22,000 to 1 chance of a win of any kind, and a vanishingly small chance of winning a life-changing sum of money. She acknowledged that some people remain devoted to Premium Bonds and continue hoping their lucky moment will arrive.However, Ms Coles advised people to take stock on their savings to ensure whatever account is being used has been working for them.She added: If you've left money in these bonds for years, it's worth considering how much you've won overall, and asking yourself whether you have kept pace with inflation, or whether your money could be working harder for you in savings or investments. Our Standards: The GB News Editorial Charter