National Savings and Investments Premium Bonds
36 reviews from the community
Review of "National Savings and Investments Premium Bonds"
THE BEGINNING:I chose to invest in premium bonds for university, namely because of the decrease in interest rates. Also, my building society account was offering very little return and was so hugely inaccessible and was ran by some idiots who could never put money into my account without damaging the paying in book and each time I had to wait for a new one to be sent in the post. Consequently, I did some serious research, I figured that I still want my money to be fairly hard for me to reach otherwise I would have spent it all in a day. I soon realised that premium bonds were the ultimate investment as I was guaranteed all the money I put in and I had to chance to be a millionaire – Yippee!
WHAT ARE THEY?:Premium Bonds are bought and sold under the operation of National Savings and Investments and offer 100% security because they are backed by the HM Treasury. A premium bond is a unit of £1, however, you must buy a minimum of a £100 at anyone time. Each unit is entered into a prize draw monthly, with each unit now holding a 1 in 30,000 chance of winning.
PRIZE ALLOCATION:Each month the draw is divided amongst the winning bonds as follows by the random number generator ERNIE, who is checked independently checked by the Government actuary to ensure no cheating.
Higher Value – £1.8 million
£1 million 1 prize
£100,000 2 prizes
£50,000 3 prizes
£25,000 6 prizes
£10,000 16 prizes
£5,000 33 prizes
Lower Value – £32.9 million
As I have said before the expected odds are 30,000 to one. In brief, if you bought 30,000 premium bonds i.e. invested £30,000 you would be expected to receive 12 prizes a year ranging from £50 to £1 million.WHAT ABOUT THE TAX MAN:
All winnings are free from Income Tax and Capital Gains Tax and will not need to be stated on your tax return.
CAN I BUY THEM:
If you have changed address you must notify them, otherwise you will never receive your prize!!
The address is:
National Savings & Investments
Equally if you do not know you’re holder’s number you can write to the above address (only those from 1976 will be on record!) You can also try to find out if you have won but your change of address meant you were unable to receive your prize.You can buy bonds at your local post office and pay by cash or you can send cheque made payable to National Savings and Investments to:
National Savings & Investments
You can go to your local post office and request a form to request to cash in your premium bonds, be warned this could take up to 15 days.PERSONAL RETURN:
Well I've only just invested in them, this opinion is for how my situation stands with premium bonds, I have only been entered for one draw so far and no luck! Im still waiting for some bonds to be entered, who knows might get lucky! Fingers crossedI will keep you posted on this, since I've had a lot of feedback requesting my personal gain - which is none as of yet.
Product Information : National Savings and Investments Premium Bonds
Manufacturer's product description
Listed on Ciao since: 25/02/2007