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Our range
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Premium Bonds
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How they workWhat are Premium Bonds?Premium Bonds are an investment where, instead of interest payments, investors have the chance to win tax-free prizes. When someone invests in Premium Bonds they are allocated a series of numbers, one for each £1 invested. The minimum purchase is £100 (or £50 when you buy by monthly standing order), which provides 100 Bond numbers and, therefore, 100 chances of winning a prize. You can hold up to £30,000. With 23 million bondholders holding £26 billion worth of Premium Bonds nationwide, Premium Bonds are one of Britain’s financial success stories. They are a fun, yet serious way of saving, combining the chance of winning tax-free prizes with the peace of mind that comes from knowing your capital is 100% secure. Back to topPrizesAs well as the two £1 million jackpots you can win anything from £50 to £100,000 for each Bond number you hold. If you win one of the jackpot prizes you will get a visit from one of the Agent Millions. The table below shows the full range of prizes:
Each month’s prize fund is equal to one month’s interest on the total value of all eligible bonds. The interest rate section gives the current prize fund rate, the number of jackpots, together with the share of the prize fund allocated to each prize band. It also gives the odds of each £1 Bond number winning a prize. Changes to Premium Bonds prize fundThe interest rate used to calculate the prize fund, the number of jackpots, the share of prize fund allocated to each prize band and the odds of winning are all variable, so they may change from time to time. Back to topOddsWe hold a prize draw every month. There are two £1 million jackpots and, at the current odds, over 1.5 million other cash prizes. The winning Bond numbers are selected at random, and each £1 Bond number has a separate and equal chance of winning a prize. If you would like to find out what the current odds are, see interest rates. Back to topTax-free advantagesAny prize you receive is free of UK Income Tax and Capital Gains Tax and you do not need to declare it on your tax return. Back to topWho can invest?Anyone aged 16 or over can buy Premium Bonds. Bonds can also be bought for a child under 16 by the child's parent, guardian, grandparent or great grandparent. Premium Bonds cannot be held jointly and are not transferable to another person. Back to topInvesting for a childIf you are a parent or guardian buying Premium Bonds for your child under 16, you'll need to give the child's details and your details on the application form. If you're the child's grandparent or great grandparent, you'll need to give the child's details, the parent's or guardian's and your own. The parent or guardian will be responsible for the Bonds and will receive notification of the purchase. The Bond certificates will be sent to the purchaser to confirm their purchase. Any prizes will be sent to the parent or guardian. Please note that Bonds cannot be bought for children under 16 years on-line, over the phone or by monthly standing order. If you would like to apply by post click here for an application form. Back to topInvestment limitsThe minimum for each purchase is £100 (or £50 when you buy by monthly standing order – see investing regularly for details). Purchases above the minimum are in multiples of £10, and you can hold up to £30,000 in total. The more you invest the better your chances of winning, so it pays to invest as much as you can. Back to top100% securityAny money you invest in Premium Bonds is 100% secure. National Savings and Investments can make this promise because our investments are backed by HM Treasury. Back to topAccessYou can cash in all or part of your Bonds at any time. Click here for more information on how to cash in. Alternatively you can contact us and we will send you a form or just ask for a Premium Bonds repayment form and pre-addressed envelope at any Post Office® branch. Return your completed form to us together with the Bonds to be cashed in. We will normally pay the money directly into your bank or building society account, but you can ask for a warrant (like a cheque) if you prefer. We’ll issue your payment within eight working days of receiving your form. Back to topCheque and debit card clearanceIf you buy your Bond by cheque or debit card, your payment will be cleared on the 7th working day (ie excluding weekends and English bank holidays). Bonds can only be cashed in after your payment has cleared. Investing regularlyThe easiest way to build up your investment and increase your chances of winning is to buy Premium Bonds monthly by standing order. Once you’ve made your first purchase (on the internet, by telephone, by post or at a Post Office® branch) we will send you details of how to start investing regularly. If you already hold Premium Bonds, you can download a standing order form. Back to topWhen Bonds go into the drawYour Bonds become eligible to take part in the prize draws once you have held them for a full calendar month following the month you bought them. They then go into every draw until you decide to cash them in, giving you the chance every month to win tax-free prizes. Back to topSelecting the winning numbersEach month the winning Bond numbers are generated randomly by a machine called ERNIE (electronic random number indicator equipment). After ERNIE has generated the numbers, they are compared in the order they were generated against all eligible Bond numbers – those that match win a prize. Because ERNIE produces the numbers entirely at random, each individual Bond has a separate and equal chance of winning a prize, regardless of when, where and how it was bought. Back to topIndependent checksERNIE’s output is checked every month by the Government Actuary, who is independent of National Savings and Investments, to verify that the draw is random. Back to topWinnersIf you're a winner we will write to you, unless you win one of the £1 million jackpots when our representative will visit you personally with the good news (always ask for identification). So it's vital that you tell us of any change of name or address. Back to topWhat if I live outside the UK?You’ll need to check that local regulations allow you to buy Premium Bonds. If so, post your application form to our Blackpool office, together with your cheque, which must be in £ sterling and drawn on a bank in the UK. Back to topUnclaimed prizesEveryone is contacted automatically when they win a prize. But there are occasions when people have moved and not told us. If you win a prize and we can't get in touch with you, we will hold on to the prize until you contact us. Don't worry, there's no time limit for claims. To check if you have an unclaimed prize, go to Have I won? and enter your holder's number (not your Bond number). Or you can write to us at: Or look in the annual supplement to the London Gazette, available at main Post Office branches. Back to topProtecting your personal informationWhen you become a customer of ours, we will treat all the personal information we hold about you as private and confidential. Click here for details on our privacy policy. Back to topOur standards of serviceAt National Savings and Investments we aim to give all our customers a prompt, accurate and friendly service. If we make a mistake, we’ll aim to put things right quickly and without fuss. We also have a formal complaints procedure with an independent arbitration scheme. If you would like a copy of our complaints procedure leaflet, call 0845 964 5000. Back to top |
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