NS&I Premium Bonds warning for savers who may 'never win a prize'

Some NS&I Premium Bonds holders may want to think about moving their money, as research suggests the majority will never win anything.

The prize fund rate is to drop from the December draw, from 4.4 percent to 4.15 percent, and then again to 4 per cent from the January draw.

Laura Suter, director of personal finance at AJ Bell, said NS&I statistics reveal that two-thirds of savers are likely to never win a prize. "Savers with money in Premium Bonds should really think about whether the account is right for them," she advised.

READ MORE: NS&I announces change for anyone with Premium Bonds starting next year

READ MORE: DWP issues Pension Credit update with 'clear message' as claims soar

Ms Suter said: "Considering many Premium Bond holders will never win a prize and the average expected return is lower than the top easy-access account, savers could well be better off with a guaranteed return elsewhere."

The upcoming cut to the prize fund rate means the chances of any single £1 Bond winning will slip from 21,000 to one to 22,000 to one. This December's draw is set to offer approximately 260,000 fewer prizes than in October.

While a lucky few might scoop substantial sums like £100,000 or £50,000, or even the £1 million jackpot, and some may even secure multiple wins in one go, countless others could endure months or years of no rewards at all, reports the Mirror.

Despite the drawbacks, Ms Suter believes that Premium Bonds will remain a popular option among savers. "These accounts are still likely to continue to be very popular as they are backed by NS&I and many savers have huge brand loyalty to the organisation," she explained.

"There are a few groups where Premium Bonds are a very attractive option, but for most