Premium Bond Boost

Premium Bond Boost

More than 21 million people hold at least one premium bond. They are the UK’s favourite Savings account. Having £72 billion saved in the National Savings & Investments (NS&I) product.

This year’s budget included a couple of changes to how premium bonds work.

The changes are:

Who Can Buy Premium Bonds?

Many people receive Premium Bonds as gifts and then may purchase more as they get older, the government is to extend this so bonds can be brought for a child by parents, grandparents, uncles,  aunts and godparents.

The National Savings & Investments (NS&I) who provide the bonds have said around £1.1 billion is currently held in bonds by under 16’s.

You have to purchase a minimum of £100 (or £50 if you are an existing bondholder) in premium bonds. This is to be reduced to £25 making premium bond saving easier.

How Many People Can Buy Premium Bonds?

The Nation Savings & Investment (NS&I) announced yesterday they were changing ‘net financing target’ from £6 billion to £9 billion.

As premium bonds don’t work like other savings accounts as there’s no interest paid on your balance, for every £1 you invest you are given a unique bond number, and entered into a prize draw every month with more than 7,000 cash prizes handed out. From £25 up to 2 people winning the top prize of £1 million. The odds of winning is 24,500 to 1.

All prizes being tax free. The National Savings & Investments (NS&I) is backed by the government meaning that every £1 you save is completely protected which is different to normal savings accounts provided by Banks and Buildings Societies as only the first £85,000 in each institution is protected by the Financial Services Compensation Scheme.