Premium Bonds

For every 1 of savings you invest youll get a unique bond number. A Premium Bond is a lottery bond issued by the United Kingdom government since 1956.

Unclaimed Premium Bond Prizes Top 44m Savings The Guardian

Premium on bonds payable or bond premium occurs when bonds payable are issued for an amount greater than their face or maturity amount.

. For both of these options youll already need to be. Instead savers purchase 1 bonds which are entered into a draw on the first of each. Prizes are drawn monthly and range from 25 to 1 million paid free of tax.

Cash in Premium Bonds online or by phone. The easiest way to cash in Premium Bonds is to call or use the online form. Bonds usually trade for a premium if their interest rate is higher than the market.

This is caused by the bonds having a stated. For example if you invest. Premium Bonds are valued at 1 each and the minimum holding is 25 maximum 50000.

Gather your NSI number and your holders numberthen call 08085 007 007 or 44 1253 832007 if youre outside the UK for more info. Before we get into the advantages lets take a look at the basics of how premium bonds work. If you buy an outstanding bond in the secondary market at a price of less than par and hold it until it matures at the.

Premium bonds may avoid negative tax consequences. NSIs Premium Bonds savings vehicle is unusual it doesnt pay interest. At present it is issued by the governments National Savings and Investments agency.

If youre not sure that you have. Bonds trade at a premium when the coupon or interest rate offered is higher than the. A premium bond is a bond that is selling for more than its par value on the open market.

A premium bond is a bond that trades on the secondary market above its original par value.

Vintage Circa 1960 National Savings Premium Bonds Stock Photo Alamy