Basics of Investing

Posts Tagged ‘bonds’

Question: Premium Bonds?

. Premium Bonds and Savings Certificates are offered by the Post Office (through National Saving & Investment, UK) as a means of ‘putting money away’ – how do they work?

Answer: Premium Bonds are an investment where, instead of interest payments, investors have the chance to win tax-free prizes. When someone invests in Premium Bonds they are allocated a series of numbers, one for each £1 invested. The minimum purchase is £100 (or £50 when you buy by monthly standing order), which provides 100 Bond numbers and, therefore, 100 chances of winning a prize. You can hold up to £30,000.

With 23 million bondholders holding £26 billion worth of Premium Bonds nationwide, Premium Bonds are one of Britain’s financial success stories. They are a fun, yet serious way of saving, combining the chance of winning tax-free prizes with the peace of mind that comes from knowing your capital is 100% secure.

Read more at the National Savings website:

http://www.nsandi.com/products/pb/howitworks.jsp

How to find the best ISA for you!