Premium Bonds UK – Should You Invest or Not? Learn the risks and potential rewards today….

By | Last Updated: 14th September 2019 | This post may contain Affiliate Links

Looking for Premium Bonds information in the United Kingdom? These were originally introduced in England in 1956. Today there’s over 20 million people who have one!

It’s quite easy to purchase premium bonds, they’re an ‘investment product’ issued by the Governments NS&I, also known as the National Savings and Investment agency.

Premium bonds differ from other investments and saving alternatives, typically you’ll be entered into a ‘monthly price draw’, where you can win between £25 and £1 million pounds tax-free. As you can see, this can be appealing for a wide range of the British population.

How do Premium Bonds work?

Usually you’ll need to invest at least £100 to open an account, you get a ‘unique bond number’ for every £1 invested. So, if you invest £100, you’ll get 100 bond numbers. This means each number has a chance to win a prize. The more numbers you invest, the more prizes you could ‘potentially’ win.

You’re allowed to keep purchasing bonds until you reach the maximum limit, this is £50,000. You can buy Premium Bonds for yourself or on behalf of your child, grandchild or great-grandchild. You must be aged at least 16 to purchase Premium Bonds for yourself.

The NS&I publish a monthly list of high value premium bond prize winners, usually they only list the area where they live.

Remember, Premium Bonds don’t pay any interest, equally you should also note that inflation can ‘reduce’ the true value of your money over time. If you’re unsure whether this is for you, please speak to an independent financial advisor to access your individual circumstances and situation.

Premium Bonds are usually suitable for:

  • People who have £100 or more to invest
  • People who want 100% security for their money
  • People who would like a chance to win a £1 million jackpot, plus other tax-free prizes
  • People who want to make the most of tax-free investment opportunities.

UK Premium Bonds are not typically suitable for:

  • People who are looking for guaranteed returns
  • People who want a regular income
  • People who are worried about inflation eating away at their savings
  • People who want to buy them as a gift
Premium Bonds

How to Buy and Sell Premium Bonds in the UK

You can buy Premium Bonds directly from NS&I website , you’ll need to register on their website, or equally you can call 08085 007 007.

If you want to ‘cash in’ your Premium Bonds, you can at any time without penalty through the website if you’ve already registered, or by downloading a Premium Bonds Cashing in form and posting it to NS&I. You can also request a form to be sent to your home address by calling 08085 007 007. By cashing in your bonds, it can take around seven working days for the money to reach your bank account.