Monday, April 7, 2008

Premium Bonds For Non-British Citizens

For the British, premium bonds are the mostly sought after for the purpose of saving. The government will guarantee your money whether you invest 100 pounds or 30,000 pounds. They help the government to finance public projects. They also offer opportunities for the certificates owners to win cash prizes which worth more than a million dollar through the monthly lottery. Unlike other financial notes, you can cash in anytime. You also will get back the money which you invest if you don't win the lottery. Therefore, they are not only investment but also offer fun activities through cash prizes.

So, who is eligible to buy these bonds? As long as you are a resident in Great Britain with the minimum age of 16, you can invest in these saving funds. For the younger generation, they can start their own education fund. For the mature market, it offers a cushion during the bad times or prepares an good lifestyle after retiring.

You don't have to worry about losing your money. Moreover, you have a chance to win 50 to a million bond if your bond number is selected as the winner. In any month, there will be at least two investors who will turn into millionaires.

The postal regulation do not permit mailing of bonds or cash prizes. If you are not a British, you can still buy these bonds provided that you are willing to travel to Great Britain to buy them in person. You can buy directly from the post offices or the National Savings and Investment agency. If you happen to be the winner of the draw, then you need to plan a trip to Great Britain to collect your winning prize. Now when it comes to taxation, you would not be taxed for the cash prize in that country. However, you have to check with your own federal income tax and find out the amount of money you can bring back that is free of tax.

You can redeem the bond at the cash value without loss. As a non-British certificate holder, you may need money and you would travel to Great Britain to convert your bonds into cash. However, you may have to pay certain fees to carry your money back to your homeland. It depend on the amount. In addition, you may need to check the restriction on traveling with large amount of cash. Therefore, you can arrange with the local banks to have your money transfer to your account in your homeland.

You also need to consider the ups and downs of the currency pound. During the exchange of currencies, you may lose some money as the pounds appreciate. Therefore, you need to keep an eye on the money market closely so that you know when is the right time to cash in your bonds.

If you want to protect your investment, you can arrange an agreement with a British resident to buy the bonds on your behalf. When the purchase is made, your counterpart will own the title of the notes. You will have a legally binding agreement with the person so that you can redeem your bonds for cash or claim the money prizes. For the benefit of your counterpart, you will offer an agreed percentage of the prize money. In such cases, you should use a British lawyer and your own attorney of your country.

I hope this article will help those who want to invest in UK premium bonds. You don't have to be a resident in the United Kingdom to buy these notes. In fact, anyone can buy them provided you follow the regulations as laid out by the government of Great Britain.