Premium Bonds have been dubbed the UK’s “favourite savings product” with more than 22 million people saving more than £121bn in the bonds.

But the Telegraph has reported that data from NS&I reveals that 62% of Premium Bond savers have not won a single prize since May 2004. However, the average holding of a saver who has not won in nearly 20 years is just £106.

Figures obtained via the Freedom of Information Act show that the average prize winner had £38,874 invested in Premium Bonds.

How do Premium Bonds work?

Premium Bonds don’t pay interest, but instead each £1 bond is entered into a monthly prize draw.

There are two £1m prizes each month as well as millions of other prizes ranging from £25 to £100,000.

Premium Bonds were a decent punt when interest rates were at a record low, and it was very difficult to earn a notable return on your money. But with interest rates rising, millions of savers could be better off moving their money away from NS&I.

However, the Premium Bonds prize fund rate, which looks at the average payout from bonds, will increase from 4% to 4.65% in September.

Also in September the odds of winning will improve from 22,000-to-one to 21,000-to-one, meaning each £1 bond will have the best chance of being drawn since April 2008.