Earlier this week, Martin Lewis took to X, formerly Twitter to share the amount of Premium Bonds he thinks are needed for a “decent bet” of winning.

“NS&I Premium Bonds are a savings account you can put money into (and take out when you want), where the interest paid is decided by a monthly prize draw,” Martin recently explained on MoneySavingExpert (MSE).

“You buy £1 bonds and each has an equal chance of winning, so the more you buy, the more your chances improve.”

Premium Bonds customers can invest between £25 and £50,000, and prizes that get shared out range from £25 to £1 million.

Who is Martin Lewis?

Although the distribution of prizes changes each month, since 2014 there have been two monthly £1 million jackpot winners – the prizes are tax-free.

However, posting on X, the MSE founder revealed: “Why do so many people give children Premium Bonds? Premium Bonds are only a decent bet if:

“- You've a big whack in, say £10,000+

“- & you pay tax on savings interest

“Most kids have/do neither. With £1,000 in over a year with typical (median average) luck you'll win nothing.”

But some Premium Bond holders seemed to disagree with Martin, as one responded: “Completely disagree. We’ve had returns that easily outstrip interest rates. Maybe we’re just lucky.”

Another replied: “Statistically, I’ve done a lot better with premium bonds than anything else – especially during lockdown when interest rates were practically nothing.”

Premium Bonds prize fund rate to reduce from January 2025 draw

In November, NS&I announced the prize fund rate for Premium Bonds will become less generous from the January 2025 draw.

It will reduce to 4%, down from 4.15%, the Treasury-backed savings giant said.

The prize fund rate for Premium Bonds was cut to 4.15% in December, down from 4.4%, according to an earlier announcement.

The odds of winning in January will remain the same as in December – at 22,000 to one.

What is a Premium Bond?

The changes include an estimated 82 prizes of £100,000 in January, down from 83 in December.

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There will be an estimated 166 prizes of £50,000 in January, down from 167 in December.

The estimated number of £1 million prizes will remain the same, at two.

There will be a higher number of lower-value prizes of £25 in January, estimated at 1,815,854, up from 1,509,458 in December.