Millions of  Brits have been issued a premium bond warning.

If an individual has under £10,000 invested, it might not be worth your time.

Matthew Parden, CEO of savings platform Marygold & Co, said: "This can be a misleading percentage as it very much depends on how much you have invested, the maximum being £50,000."

He said: "Consider if someone had £1,000 of Bonds in total - the annual return using the average rate would be £40.

"But given the odds of winning a prize are 22,000 to 1, it would take 22 months before a prize is likely to be won. This of course theoretically, could though still be £1million."

He said: "To have a decent chance of winning prizes regularly, savers should be holding at least £10,000 to £20,000 in Bonds."

Mr Parden said: "For a 45% taxpayer (someone who earns over £125,140) a 3.80% return would be the equivalent to a gross return of 6.91%. For a higher rate taxpayer (someone earning over £50,271) the equivalent gross rate would 6.33% - that’s not unattractive if you’re lucky enough to be a higher earner."

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Premium Bonds winning prize pot cut from April 2025

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It comes after NS&I announced an increased interest rate for NS&I’s Direct ISA with immediate effect. The Premium Bonds prize fund rate will be 3.80% from the April 2025 draw.

Reduced interest rates for Direct Saver and Income Bonds will apply from 5 March 2025.

The prize fund rate for Premium Bonds will change to 3.80%, down from 4.00% in April.

The odds of winning will remain the same at 22,000 to 1.