Premium Bonds vs Standard Savings: Why Premium Bonds Lose Value

Описание: Calculate your exact numbers using our free tool: https://cost-saver.co.uk/toolbox/prem...

Many UK savers hold Premium Bonds because they are familiar and feel safe, but they might not be the best place for your hard-earned money.

The issue is that the advertised 4.4% prize rate is a mean average. A few big million-pound winners pull that headline figure up, meaning the median saver actually receives a much lower return. If you hold £5,000, your realistic yield is closer to 2% or 3%. Once you account for inflation and the interest you could be earning in a standard savings account or Cash ISA, Premium Bonds often cost you money in foregone interest.

To help you compare, we created a calculator that compares your Premium Bonds holding against easy-access and fixed savings accounts on an after-tax basis: https://www.cost-saver.co.uk/toolbox/...

Read our complete guide to the after-tax truth here: https://www.cost-saver.co.uk/blog/pre...


⏳ Timestamps:
0:00 - Introduction
1:00 - Deep Dive
2:00 - Why the Comparison Trips So Many People Up
3:00 - How Premium Bonds Actually Pay Out in 2026
4:00 - The Hidden Costs Nobody Mentions
5:00 - After-Tax Maths: The Comparison Most People Skip
6:00 - Common Mistakes UK Savers Keep Making
7:00 - Better Choices for Different Types of Saver

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