Premium Bond
The Premium Bond was introduced in 1956 by Harold Macmillan, Premium Bond is defined as a government bond which is priced higher than the couple. According to National Savings and Investments (NS & I), approximately 23 million people are premium holders.
Issued by the British government's National Savings and Investments scheme, Premium Bond is a simple and secure way to save money with a chance to win tax-free prices. It guarantees investors that their capital is 100% secure. Generally there are two types of premium bonds – non-callable bonds and callable bonds.
A premium Bondholder invest money in government. Instead of paying interest to holders of government money to pay a prize fund and gives Bondholder a chance to win tax-free profits. Premium bonds can not be held in joint names and are not transferable to another person. One of the great advantages is that all or a portion of premium bonds can be redeemed at any time.
Bondholders to be shared with a range of numbers for each £ invested 1st For example, is 100 bond numbers provided for the purchase of 100 pounds worth of bonds. Therefore Bondholder has 100 chances to win a prize. The random numbers generated by a machine called the Electronic Random Number Indicator Equipment (ERNIE). Every month a draw is made and Bondholder can win anything from £ 50 to £ 1 million. The price you win the draw, are free from UK income and capital gains tax.
Premium bonds can be purchased by phone or you can get an application form by mail. The program can be downloaded from the Internet, too. Premium bonds allow investors to invest a minimum sum of 100 pounds, they are sold in multiples of £ 10. The maximum possession limit of up to a total of £ 30,000. Someone who is 16 years or more may apply for premium bonds. For children under 16 years, is the premium bonds bought by their parents or guardians
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