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Lucky Star
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13-04-2007, 03:56 PM

Premium Bonds Question

How do these work?

Do you get interest on the money you invest and is it taxed? Is the interest added to the balance?

I understand any winnings are not taxed.
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terrier69
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13-04-2007, 04:05 PM
You don't get any interest.
You buy a set amount (I think the minimum is now £100) and each £1 bond gets entered into the monthly draw, every month to win up to £1,000,000!
You can cash them in at any stage.
I had 62 bought for me when I was born (1969), so thats £62 worth.
I could cash them in and get that but its hardly worth it.
In my lifetime I have won £50 a few times, and also £500 when I was 17 (It went towards my first car ).
So not a bad investment at all!


Incidentally, when my Mum died last year I found her premium bond holders card. The premium bonds were the only thing I didn't know she had. I sent off the card to retrieve the funds I had inherited..... and a cheque arrived for £2! bang goes the holiday in the Bahamas lol
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Lucky Star
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13-04-2007, 07:50 PM
Thanks Becky, that's really useful.

So if you have some bonds and you pass away (sorry about your mum :smt052 ) your family can inherit them?
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terrier69
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13-04-2007, 08:02 PM
They are non-transferable, in other words you can never inherit the actual bonds, but you do inherit the money.
When someone dies and the person managing their afairs lets national savings know, they will send a cheque for the amount of the bonds.

So you never lose anything.
You never get interest.
But you can win prizes.

Its a bit like the lottery except you only pay once and can always get your money back! Not bad really
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Lucky Star
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13-04-2007, 08:20 PM
Thank you Becky
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Inca
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13-04-2007, 09:57 PM
and when you cash them in you get the same back ......so you can't really loose but you don't always gain
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Lucky Star
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13-04-2007, 10:31 PM
It appears that way Inca ...
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