Should you own premium bonds?

clock

Premium bonds are often seen as good way to save. Read our guide to get a handle on the basics.

Premium bonds are simple savings accounts you can use just like any normal savings account. The difference is that the interest paid on your savings is determined by a monthly lottery. Savers stand to win anywhere between £25 to £1m tax-free. So, how do premium bonds work? If you open a premium bond account you can invest between £100 and £30,000. Savers also get the option to put in £50 a month via direct debit. In return you'll receive the equivalent amount in bonds. For example, if you invest £100, you would receive 100 £1 bonds. >>This article first appeared on Your Money<...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Ten common investment mistakes to discuss with clients

Ten common investment mistakes to discuss with clients

Seeking professional financial advice builds investment confidence

John Moore
clock 13 May 2024 • 4 min read
Future of Investment Festival: Our specialist sessions for advisers

Future of Investment Festival: Our specialist sessions for advisers

Targeted at sustainable, forward-thinking finance professionals

Professional Adviser
clock 10 May 2024 • 1 min read
Defaqto: 'No appropriate and compliant way to compare MPS portfolios'

Defaqto: 'No appropriate and compliant way to compare MPS portfolios'

Tech firm to debut a performance comparator tracking solutions’ data

Hope Coumbe
clock 09 May 2024 • 1 min read