{"id":1122,"date":"2023-04-03T15:52:46","date_gmt":"2023-04-03T14:52:46","guid":{"rendered":"https:\/\/www.redstareducation.co.uk\/blog\/?p=1122"},"modified":"2023-04-03T15:52:46","modified_gmt":"2023-04-03T14:52:46","slug":"are-premium-bonds-right-for-me","status":"publish","type":"post","link":"https:\/\/www.redstareducation.co.uk\/blog\/are-premium-bonds-right-for-me\/","title":{"rendered":"Are Premium Bonds Right for Me?"},"content":{"rendered":"

Premium Bonds are an investment product offered by National Savings & Investment. Let\u2019s have a look at how they work and whether they\u2019re right for you\u2026<\/p>\n

National Savings & Investment<\/h2>\n

National Savings & Investment (NS&I) is a state-owned UK savings bank. NS&I is the only place in which you can get these Premium Bonds.<\/p>\n

When you save money with NS&I, you\u2019re essentially lending your money to the government, and the government in return either gives you interest on your money, or in the case of Premium Bonds, a chance to win cash prizes.<\/p>\n

As with any product offered by NS&I, your money is secure and backed by HM Treasury.<\/p>\n

How Premium Bonds Work<\/h2>\n

Each Premium Bond costs \u00a31, and you can hold between \u00a325 and \u00a350,000 worth of bonds. For every bond you hold, you are entered into a monthly prize draw. So, if you had \u00a350 of bonds, you would get 50 different entries.<\/p>\n

A random number generator decides which bond holders win the draw each month. If you do win the monthly prize draw, winnings are tax-free and range all the way from \u00a325 to \u00a31 million.<\/p>\n

\"\"<\/p>\n

If I Win<\/h2>\n

If you win, you can choose to have the money paid straight into your bank account, reinvested into more bonds, or sent as a cheque through the post.<\/p>\n

However, if you\u2019re lucky enough to win more than \u00a35,000, you will not be automatically paid and will instead receive a claim form to complete and confirm how you wish to receive the prize.<\/p>\n

Are Premium Bonds Right for Me?<\/h2>\n

As with any financial decision, whether Premium Bonds are right for you is a personal choice.<\/p>\n

You might decide they are right for you if you want the excitement that comes with the possibility of winning a prize every month. You can also cash in all or part of your Premium Bonds at any time, meaning that you aren\u2019t tied in if you decide it\u2019s no longer right for you.<\/p>\n

However, if you want a regular income with guaranteed returns, they may not be the best choice for you, as the money you hold as bonds will not benefit from added interest. Therefore, over time, inflation will have an erosive effect on your savings, making them lose value over time.<\/p>\n

The odds of winning are 24,000 to 1 for every bond you hold, and many will either win smaller-value prizes or never win at all. This means that unless you are lucky enough to win one of the bigger prizes, your money will probably fail to keep pace with inflation.<\/p>\n

For more information about Premium Bonds, you can head to the NS&I website<\/a>.<\/h3>\n","protected":false},"excerpt":{"rendered":"

Premium Bonds are an investment product offered by National Savings & Investment. Let\u2019s have a look at how they work and whether they\u2019re right for you\u2026 National Savings & Investment National Savings & Investment (NS&I) is a state-owned UK savings bank. NS&I is the only place in which you can get these Premium Bonds. When […]<\/p>\n","protected":false},"author":7,"featured_media":1126,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[180,596,597,24,598,179,595,59,238,591,590,589,588,592,593,109,594],"class_list":["post-1122","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bank","tag-banking","tag-bonds","tag-financial-planning","tag-financial-products","tag-government","tag-hm-treasury","tag-inflation","tag-interest","tag-investments","tag-national-savings-investments","tag-ns-i","tag-nsi","tag-premium-bonds","tag-prize-draw","tag-savings","tag-tax-free"],"acf":[],"yoast_head":"\nAre Premium Bonds Right for Me? - Red Star Education Blog<\/title>\n<meta name=\"description\" content=\"We discuss how National Savings & Investment's Premium Bonds work and whether or not they're right for you...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.redstareducation.co.uk\/blog\/are-premium-bonds-right-for-me\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are Premium Bonds Right for Me? 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