What Are National Savings Premium Bonds?
They are a form of tax-free savings that have no defined term or guaranteed rate of interest. Premium bonds offer investors the chance to win a range of prizes ranging from £50 to a million pound jackpot. A draw takes place every month. National Savings premium bonds can be bought from their web site, the Post Office or over the phone. Every £1 invested secures a single entry into the monthly prize draw. There are currently 23 million holders and £26 billion invested. These investments are capital-protected so are often marketed as a fun, speculative way to ‘win’ money. They are a tax-free investment so the winner of a prize, including the million pound jackpot, won’t have to pay capital gains tax. Advantages of National Savings Premium Bonds document.getElementById(‘adsense_placeholder_2’).innerHTML = document.getElementById(‘adsense_ad_2_hidden’).innerHTML; • Capital protection. The capital isn’t at risk when an investment is made. • Tax-free investments. The winner of a prize doesn’
