| Do you think you should win at a least a | | | | it is a very safe investment because you |
| prize if you have invested 30,000 pounds in | | | | won't lose your money. Unlike any other |
| premium bonds? There is no guarantee that you | | | | bonds, you can withdraw your money at any |
| will win a prize even in your lifetime. But | | | | time. |
| the report said that there are 168 | | | | |
| millionaires from the winning the grand prize | | | | The negating factor is that you don't earn |
| since 1994. So, you may stand a chance to | | | | any interest from these bonds. But you have |
| win. | | | | an opportunity to become a millionaire. In |
| | | | addition, you can use the same bonds for |
| Anyone can buy premium bonds. The only | | | | every draw. If you compare to lottery, then |
| requirement is the person must be at least 16 | | | | you understand that why so many British |
| years old. You can invest as little as 100 | | | | people invest in these notes. In the lottery, |
| pounds or as high as 30,000 pounds. | | | | you have to buy all the time but for premium |
| | | | bonds, you can buy one time and you are |
| Although the bonds don't give you any | | | | entitled for a lifetime opportunity to win |
| interest, but the money which is pooled | | | | 1,000,000 dollars of cash provided that you |
| together from all the investors provides a | | | | don't redeem them for cash. |
| sufficient fund for the cash prizes. You can | | | | |
| calculate the interest by taking the total | | | | Another factor that many people don't |
| cash money and divide it by the total | | | | consider is the inflation rate. Although you |
| investment. It will come to about 4% for | | | | don't lose your investment, but the inflation |
| every pound invested. | | | | will depreciate the value of your investment. |
| | | | What you have invested 10 years ago is not |
| How do the National Savings and Investment | | | | going be the same worth should you decide to |
| agency determine who is the winner of the | | | | redeem the bonds today. You would not be able |
| cash prizes? Every month, they will draw | | | | to buy many things today if you could buy |
| random numbers using a number generator which | | | | them 10 years ago with the same amount of |
| is known as ERNIE. It will prevent any kind | | | | money. |
| of pattern. This will ensure that no one can | | | | |
| cheat the machine. Every bond will have a | | | | Premium bonds are safe investments. Today, |
| unique number. However, you need to remember | | | | the National Savings and Investment firm |
| one unique code. This unique code is issued | | | | offer an easier way to buy the bonds. You |
| to you as a bondholder when you buy your | | | | only need to call them by phone. Apart from |
| first premium bonds. With this unique code, | | | | this, you can buy them from post offices, |
| it can trace to all your bonds that you have | | | | ATMS or directly from the agency. You only |
| bought. | | | | need to remember one thing. It is risk-free |
| | | | and offers no interest. Nevertheless, it is |
| The good thing about this investment is that | | | | not inflation-proof. The value of your |
| the government guarantee it. You can say that | | | | investment will depreciate over the time. |