Claim Your Winning Premium Bonds Prizes

Premium bonds offer an opportunity to win cash prizes. Imagine if you have won 1,000,000 pounds. What would you do with that kind of money?

A unique number is printed on every bond. The number will be kept along with all the numbers which have been issued. They are entered into automatic number generator which gives out the winning numbers every month. The cash prizes are ranged from 50 to a million pounds. With the ownership of these bonds, you stand a chance to be a winner for the whole year. Don't you think it is better to put your money in these funds instead of your bank saving account which offer meagre returns?

There are cases where no one step forward to claim the prize money. Why are there unclaimed premium bond prizes? One of the possibilities is that they are not aware that they have won the prize. Another reason could be they have not informed the National Savings and Investment (NSI) agency about their new addresses when they move. Usually after the draw, the agency will notify the winners by mail. If nobody claim the winning prize, the agency will hold the money until someone comes forward and claim it.

Many investors do not know how to claim their money. You just need to know the right places to find it. The National Savings and Investment (NS&I) usually offer this information on the Internet. Unclaimed prizes are announced in the form of lists. You can do a simple search at premium bond prize checker to determine whether you are the past winner or in some circumstances, your prize may be pending. This service is free. You only need to enter your bond numbers and in a few seconds, you will know if you win any prize. If you find out that you are the winner, you can claim the money by presenting your bonds to the agency. Without the bond, no one can touch the money even if they know the bond number. Therefore, never lose the bonds and always keep them in a safe place.

When you buy the bond for the first time, you are given a unique code. This code represents your bondholder number. It also holds all your bond numbers. In case you forget your the number, try to recall the number given you when you buy your first premium bond. The code will carry 8 digits followed by a letter. The bond numbers will contain alphabets in the numbering sequences and these numbers will not follow the same sequence. This will help you to differentiate between your bondholder code and your bond numbers.

With most online bondholder checking services, the list of prizes is updated on a regular basis. Always remember your bondholder number because this is what is needed if you want to do a search online. If you have a hundred premium bonds, you only need to remember one number. After entering the number, you will receive an email which is sent by the service provider, informing you the result. With such a system in place, even if you move, you can still receive the email. Thus, if you are out of the country, you can still check the results online and have the results emailed to you. The service providers will look into the database for new and past numbers. In the few days, you will know if you have won the prize money.

NS & I Premium Bonds

The idea of premium bonds were first came about in 1861. The purpose of these funds is to help the commoners to save and invest their money for the protection in the event of accident or death. It was formerly known as the Post Office Saving Bank. People started to buy more notes. The Chancellor needed money for the public projects and he received financial help through the funds. In this way, the premium bonds began to serve a dual purpose.

It was a secure investment for the people. They don't need to be afraid the funds go bankrupt or depreciate in value. On the other hand, it served as a source of funding for the government when the taxes and other financial instruments are insufficient.

The Post Office Bank issued saving certificates along with the lottery system. In 1957, they released the lottery once a month to encourage more personal investment from the British citizens. The Treasury Department took over the management of the bonds from the Post Office management in 1967. The Post Office Saving Bank was changed to the National Savings and Investment (NS & I). The Post Office from then on supplied most of the premium bonds to the public.

The NSI has two functions; source of other investments and premium bonds. In 1996, the Post Office turned into the store of the agency. By then the National Savings and Investment worked closely with the Chancellor. Anyone who want to invest in this fund will drop by any post office and spend 100 pounds for the purchase of a bond. The maximum investment for each person is 30,000 pounds.

In 1999, Siemens Corp joined the agency. The modernization of the agency began when the Siemens schools of business trained more than 4000 workers of the agency in the area of investment strategies. They became more professional in the delivery of the investment services. The agency increased the number of call centers and engaged new computer technology in managing the investment portfolios. The contract between Siemens and the National Savings and Investments will be terminated in 2014. Hopefully by then, the agency will be able to run the operation on its own.

The training has helped the employees to improve the customer service and to attract more investment opportunities. The Internet helped in better communication between them and the customers. The National Savings and Investment (NS&I) will offer better services to their customer as more people are beginning to invest their money in premium bonds.

For the last ten year, this fund has bloomed tremendously. If the growth is poor, then you will enjoy a higher probability of winning the draw. According to statistics, as the population increases, it decreases the odds on getting your number selected. During the bad times, many investors will switch their investment to traditional low interest saving accounts. Therefore, this will reduce the number of premium bonds in the market which will increase your chances of winning.

Premium Bonds Are Better Than Lottery

One of the uprising stars in the investment portfolio is premium bonds. Although many have place their money in these bonds, there are some quarters begin to doubt if they are a worthwhile investment. The first premium bond was brought into existence in 1956. The British government used this instrument to persuade the citizens to save money. Unlike any other security or treasury bond, it does not give any interest. Instead it offers cash prizes which are worth more than a million pounds. It provides opportunities to the lower income group to win one million pounds using a lottery. About 20 million people in UK hold at least one premium bond. This represents one third of the population. They can buy these bonds from the post office or the National Savings and Investment agencies.

When the interest rates drop, these bonds seem to be a secure avenue for investing. At the same time, investors will the excitement to win one million pounds in cash every twice a month. The top prizes are about 15% of the total prize money allocated. Another 15% is allocated for the mid range prizes while the remaining 70% goes into small prizes with the smallest that carries the value of 50 pounds.

A 50 pound prize is equivalent to a 500 percent return as each bond is one pound. Your chances of winning is 1 in 21,000 but as the bonds become more popular, the odds may turn against you.

You can start with 100 pounds but the cap is set at 30,000 pounds. The government guarantees your investment but not the odds of winning cash prizes. This guarantee allows you to sleep peacefully every night without worrying about losing your hard-earned saving.

The minimum age for an investor in premium bonds is 16. Many parents buy these monetary instruments for their children's education funds. If your children start investing early, they will appreciate the value of money. In addition, the possibilities of winning sufficient money in helping them to start life are great.

Using the same bond, you can continue to play the game as long as you like. It makes sense if you have more bonds, then your odds of winning get better. Since the prize money is tax-free, you can reinvest the money into the bonds again until you hit the limit of 30,000 pounds. However, during the last decade, the chance of winning has drop. This is due to the fact that the market has a lot of bonds which lower the probability of getting your number selected.

Nevertheless, you still have an upper hand compared to the American Lottery because you can use the same premium bonds over and over again. You can check online for the premium bond draw results. Should your numbers match the ones on the listing, then you contact them and claim your money. Till today more than 500,000 unclaimed prizes are sitting in the National Savings and Investment agency.

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.