With premium bonds investment, investors have the opportunity to win tax-free prizes rather than interest payments. This investment attracts allocation of series of numbers, one for every invested £1. The least purchase is £100 – it is £50 when you purchase by monthly standing order; £100 provides 100 bond numbers which means 100 opportunities of winning a prize. You can hold as much as £300.

Premium bonds offer one of the financial success reports of Britain with twenty-three million bondholders holding £28 billion premium bonds worth nationwide. it is a strict way of saving and it also provides fun as you combine the winning chances for tax-free prizes and the rest of mind that you get from the assurance that your capital is totally secure.

In addition to the £1, 000, 000 jackpot, you may get anything up to £100, 000 for every bond number you hold. Winning the jackpot will attract a visit from Agent Million. The higher value price values are £1, 000,000, £100, 000, £50, 000, £25, 000, £10, 000 and £5, 000; the medium values are £1, 000 and £500; the lower values are £100, £50 and £25.

Every month’s prize fund is equivalent to a month’s interest on the entire value of all eligible bonds. The current prize fund rate, number of jackpots as well as the share fund prize that is allocated every prize band, is given by the interest rate section. The variables are the interest rate utilized in the prize fund calculation, the odds of winning as well as the fund allocated to each prize band; therefore, they are subject to change at certain times.

Tax-free Benefits: if you get any prize; such prize is free of UK Income Tax and Capital Gains Tax and it will not be necessary for you to declare it on your tax return.

Eligible Investor: if you are up to the age of 16 or more, you are eligible for premium bonds purchase. Parents, guardian, grannies or great grannies can purchase bonds for a child who is under the age of 16. Note that this investment is never jointly held and also are not transferable to someone else. Perhaps you are a parent or guardian buying bonds for a child under age 16; you are required to supply the child’s details as well as your details on the application form. In the case where the child’s grandparent or great grandparent is the one buying the bond for the child; the child’s details will be supplied as well as the parent’s or guardian’s details and also the details of the grandparent. The responsibilities for this bond bought for a child under 16 will be carried by the parent or guardian and they will be the ones to be notified of the purchase. In order to confirm purchase, the bond certificate will be sent to the buyer. However, buying bonds for a child under age 16 cannot be done online, via the phone as well as via monthly standing order.

Investment Limits: the least for each purchase is generally £100 or £50 for those who buy via monthly standing order. The more the investment, the higher the chances of investment limits.