Monday, April 7, 2008

Premium Bonds Facts

Apart from savings, premium bonds also offer the opportunity of safe gambling. They are better than the traditional lotteries because you don't lose money if you don't win any prize. You can continue to try your luck every twice a month for as long as your bonds are still in your hands. You just invest once and you can play for a lifetime. Young or old can benefit from these bonds.

Every bond carries a unique number. A machine will collect all these numbers and then generate the winning numbers. Winners will receive cash prizes instead of interest. This is a secure investment because it is guaranteed by the government. You can also cash in whenever you want and you don't lose a single cent. You can only buy up to 30,000 pounds worth of bonds. The limit is to prevent large corporate bodies from buying in millions so that common people like you can stand a chance to win.

You can increase your chances of winning. If you have a lot of premium bonds, you can increase your odds of winning the grand prize which is worth one million pounds. With 30,000 bonds, your numbers will have a better odd which is 400,000 to 1. The more you save the better your future will be.

The selection of number is random. This means the more numbers you have in your hands, the higher your chances of winning the cash prize.

You can buy the bonds on the Internet or over the phone. Alternatively, you can visit your local post office to purchase them.

Three simple process: buy, save, and win. However, you are not guaranteed to win any cash prizes. These bonds are useful especially when you urgently need the money or you retire.

You need to be at least 16 years old before you can buy them. You can also buy for your children if you plan their education fund. It would be nice to have some money when you start your family provided you started saving at the early years.

The cash prizes are free of taxes. So, when you win 1,000,000 pounds, you get to keep all of them. You can use the money to pay for your college or settle debts. You can do anything with it. So, are you reading to invest in premium bonds? The smallest cash prize of 50 pounds is still something. Just look at the interest rate that your saving account is offering.