Premium Bond Facts
Some Facts About Premium Bonds
The Premium bond lottery is the British answer to the need for savings and the fun of gambling. Each bond you buy will have a specific number. The number of the bond is put into a random numbers generating machine and monthly thousands of numbers are chosen randomly to receive a cash prize in lieu of interest. The investment is completely safe and you can cash in your bonds at full value when ever you wish. There is a fifty thousand pound cap on the investments so large corporations cannot buy millions of bonds to skew the chance for the common man to win.
There are ways to improve your odds. For example the more bonds that you buy and hold the more chance you will have of winning a cash prize that can equal as much as one million pounds.
Statistically you have about 23,000 to one shot with a one pound premium bond. By buying more bonds, your odds of winning improve significantly. The system is designed to choose number randomly so the more bond serial numbers (tickets) you have in the lottery the more money you potentially make winning cash prizes. You can even sign up for a monthly fifty pound savings program where you can have the money automatically drawn from your regular checking account.
A thirty-fifty thousand pound investment would give you a little over/under four hundred thousand chance to one for winning the big million pound lotto prize. So the more you save the more chances you have of winning enough money to set you up for life. You can even buy the premium bonds online or over the phone. You can even purchase the bonds at your local post office. It’s that easy. Purchase, save, and win. Of course not all bonds are going to win you money, but you will have a nice nest egg to help you in your advanced years or if you run into financial troubles.
You can buy the bonds for a child or if you are sixteen (sorry changed to 18 in 2021) you can buy them yourself. It is a great way to save money for college or to put away some extra cash for when you meet that special someone and want to start a family. If you win a high end prize you can even pay for your college with the winnings. The big prize of a million pounds would be enough to set you up for life. So don’t let your young age keep you from purchasing and holding premium bonds. Even if you are a senior citizen, it is never too late to put away some money for a cloudy day.
If you win a cash prize, it is free of taxes, unlike the less civilized countries. So when you win those million pounds, you get to keep the whole million. You can reinvest (buy the maximum number of bonds) and at the same time live the quality of life you always dreamed of. Even if you only win the minimal prize of twenty-five pounds per bond purchase, you would have made more money (doubled your money) on your investment than you would have if you put it in a savings account at the bank for fifty years.
