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Premium Bonds
A £1 million jackpot every month NSandI hold a prize draw every month with a £1 million jackpot plus over a million other tax-free prizes. The more Bonds you have, the better your chances of winning.
Why choose this product? If you want an investment which offers the fun and excitement of a chance of a big win.
Who can invest? Anyone aged 16 or over; can also be bought on behalf of under-16s by parents and grand-parents.
Minimum purchase: £100
Maximum holding: £30,000
Investment term No set term
Prize draws Instead of paying interest, Bonds are entered into monthly prize draws. Remember that inflation can reduce the true value of your money over time.
Tax status: Free from UK Income Tax and Capital Gains Tax
Apply for premium bonds here
How Premium Bonds work
Premium Bonds were launched in 1956 and they've been one of Britain's financial success stories ever since.
Over 22 million people hold Premium Bonds that's over 30% of the UK population. The scheme has always been about encouraging people to save for their future by adding a little bit of a thrill to the idea of saving. Here we explain more about how they work and some of the history behind them. Premium Bonds are a type of investment where, instead of receiving interest or dividends, you have the chance to win tax-free cash prizes. Tax-free means that prizes are free of UK Income Tax and Capital Gains Tax.
Each month there is a £1 million jackpot, along with hundreds of thousands of other cash prizes ranging from £25 to £100,000.
You can buy from £100 to a maximum of £30,000 and you're given a unique Bond number for every £1 you invest. Each number has a separate and equal chance of winning a prize so the more you buy the better your chances of winning. Though it's worth remembering that, over time, inflation may reduce the true value of your money. You can buy Premium Bonds for yourself if you're over 16. If you're a parent, guardian, grandparent or great-grandparent of a child under 16, you can also buy Bonds as a gift for them. Any Bonds you hold will be entered into our prize draws once you've held them for one full calendar month following the month you bought them. You'll then have new chances to win every month for as long as you keep your Bonds.
Monthly prizes
They hold a Premium Bonds prize draw every month. ERNIE, a random number generator, produces a list of several million numbers which are matched to eligible Bond numbers. The first matching number wins the £1 million jackpot, while the other numbers are allocated the rest of the prizes in descending order. They set the size of the prize fund each month by working out one month's interest on the total value of all eligible Premium Bonds in the draw. They then share the prize fund between different prize values. The prize fund interest rate and the share given to each prize value can change from time to time.
Flexible savings
You can build up your investment and boost your chances of winning by buying Premium Bonds monthly by standing order. And you can cash in all or part of your Premium Bonds whenever you want with no notice and no penalty. It's up to you.
Your chances of winning
You can find out the chances of winning by visiting nsandi.com. Remember that the odds quoted are the chances of oneindividual Bond number winning a prize in one draw, so the more Bonds you have, the better your chances of winning. The odds are variable so they can change from time to time.
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