What Are Premium Bonds?

Premium bonds have been an institution in the UK investment sector for over 50 years. Premium bonds are an investment in which an investor is allocated a number per £1 invested. Each month a draw is made and tax free prizes ranging from £25 – £1million can be won.

Premium Bonds are a form of investment in which the winning prizes can be significantly greater than the interest received from other investments like stocks, corporate bonds or deposit accounts. The minimum purchase is £100, which provides 100 numbers.

Premium Bonds are a popular form of investment in the UK with 23 million bond holders holding £26 billion worth of Premium Bonds nationwide.

National Savings and Investment (NS&I)

National Savings and Investment offer Premium Bonds to investors. One factor which makes N&IS premium bonds popular is that there is absolutely no risk with this form of bond investment.

With corporate bonds, government bonds and junk bonds, a significant level of risk comes with the investment. However, NS&I Premium Bonds are guaranteed 100% secure. National Savings and Investments are backed by Her Majesty’s Treasury and although there is no guaranteed Return on Investment (ROI), the initial premium bond capital cannot be lost.

Premium Bond Prizes

The Table Below Shows the Full Range of Premium Bond Prizes from NS&I:

Prize band

Prize value

Higher value:

£1million
£100,000
£50,000
£25,000
£10,000
£5,000

Medium value:

£1,000
£500

Lower value:

£100
£50
£25

For more information on NS&I Premium Bonds, Premium Bond Prizes, Premium Bond Winners or a Premium Bond Checker visit http://www.nsandi.com/