Different Types of Premium
Bonds
Premium Bonds
NS&I offers premium bonds which cost £1
each. Sold in multiples of £10, buyers are allowed to purchase
a maximum value of £30,000, or a minimum of £100.
There
is an age requirement of 16 to purchase, but may also be bought
on the behalf of children under 16 by a parent, grandparent,
great grandparent, or guardian. Prize draws are held every month,
with a wait time of thirty day after purchase for your bonds
to be entered.
ERNIE (Electronic Random Number Indicator Equipment)
generates the numbers that are drawn. These numbers are checked
at every
monthly draw by the Government Actuary (independent of NS&I)
to verify that the randomness of the results.
Prizes range
from £50 to £1m, all tax-exempt, and the
odds of winning are increased by purchasing more bonds.
Unlike a lottery, your investment is guaranteed
and you can redeem it at any time. However, premium bonds do not
earn any kind of interest, therefore the only return that is offered
is anything won as a prize. More information is available at the
NS&I website. (http://www.nsandi.com).
