From Monday 1st June the limit to the amount an investor can hold in Premium Bonds will increase to £50,000.
The National Savings & Investment (NS&I) Premium Bonds are backed by the Government and to date, there are currently 21 million savers invested holding around £53 billion in total.
The idea of Premium Bonds is not to invest for a guaranteed return but to invest in the hope of winning cash prizes, some as large as £1 million, and all are tax free.
NS&I pays out millions of prizes equal to an interest rate of 1.35 per cent a year on the total money held in the bonds – it’s worth about £715 million a year
Premium Bonds may be ideal for you if;
– you fancy the chance of winning prizes from £25 to £1 million
– Can invest a minimum of £100
– Need 100% security on your money (they are Government backed)
– maximise tax free savings
Premium Bonds may not be for you if;
– you need a regular income
– you are looking for guaranteed returns on your investment
– you are concerned that inflation will erode the capital value
The Bonds become eligible for the draw one full calendar month after they are purchased. So if you buy Bonds in June, they’ll be in every draw from August.
Each Bond has a a unique Bond number for every £1 invested. Every number has a separate and equal chance each month of winning a prize so the more Bonds you buy, the better your chances of winning!
Prizes are paid in 1 of 3 ways;
– Direct to your bank account
– You can have them automatically re-invested into more Premium Bonds
– By post
If you win a prize of over £5,000, you’ll be sent a claim form and if you’re lucky enough to win the Jackpot, you’ll be paid a visit by a Premium Bond Representative!
This is just one of the great ways you can save, especially if you like a bit of fun to your investments. If you’d like to know more about savings, just get in touch below