Premium Bonds can be purchased through our safe online system. Please have your debit card information handy.
You can buy Premium Bonds by bank transfer if you or the child you’re buying for already have some (including standing order).
How can you make a payment into a Premium Bond?
What is the procedure for purchasing Premium Bonds?
- Purchasing anything on the internet. Premium Bonds can be purchased through our safe online system.
- Purchasing through mail. Simply fill out an application and mail it to us along with a check made payable to NS&I.
How do I send money from my bank account to NS&I?
A bank transfer may be the best option for topping up your or your child’s funds on a regular basis. You can set up a standing order with your bank to top up more frequently.
You can usually accomplish this online, over the phone, or in a branch. There’s no need to provide your card information; we’ll update your account once the funds have been received. It normally takes two to three banking days for this to happen.
Premium Bonds, Income Bonds, Direct Saver, Direct ISA, Junior ISA, and Investment Account can all be topped up via bank transfer or standing order.
Is it possible to purchase Premium Bonds through my bank?
Every year, millions of Britons purchase Premium Bonds through the government-backed National Savings and Investments (NS&I).
Instead of paying interest, you’ll be entered into a monthly prize draw for a chance to win one of three tax-free rewards valued up to £1 million.
So, if you’re seeking for a regular income, this isn’t the account for you most people will only ever get a small percentage of what they contribute.
Premium Bonds are simple to obtain; all you have to do is apply on the NS&I website.
Alternatively, you can call 08085 007 007 or +44 1772 329880 to apply over the phone.
They can even be acquired for children under the age of 16, such as for a niece, nephew, or a friend’s child (more on this later).
Parents or guardians must be chosen to manage the child’s finances until they reach the age of 16.
For every £1 you invest in a Premium Bond, you’ll receive a unique bond number. They’ll be entered into the draw once you’ve had them for a month.
Have you already purchased some bonds? Check to see if you were a big winner in the most recent lottery.
I live outside the UK. Can I still buy Premium Bonds?
The first step is to determine whether you are permitted to hold Premium Bonds under local legislation. Premium Bonds may not be possible or practical to hold in the United States because to strict gaming and lottery legislation.
If you live in a country where they are legal, you must submit your initial application by mail. After you’ve set up your holding, you may sign up for NS&I’s online or phone service.
You can then manage your account online or over the phone (if you don’t mind the fees), which includes purchasing new bonds or cashing them in.
You also have the option of receiving rewards by BACS to a UK bank or building society account, or an NS&I Direct Saver or Investment Account (you’ll be advised of any changes via email), as well as receiving paperless papers.
Bonds can only be purchased with a personal debit card issued by a UK bank or building society online or over the phone. Prizes will be paid out in pound sterling wherever you are in the world.
Can I buy Premium Bonds for a child, even if they aren’t family?
Until the kid reaches the age of 16, the bonds are managed by the parent or guardian named on the application, regardless of who purchases them.
Until the child turns 16, the bond record, any prizes received, and payment for cashed in bonds will be forwarded to the selected individual.
Previously, only grandparents and great-grandparents were allowed to buy Premium Bonds for their grandchildren, but the regulations have been relaxed, and you can now buy them for any child, regardless of link.
Premium Bonds for youngsters can be purchased online at this NS&I gift website or by mail. You can also apply over the phone if you’re purchasing Premium Bonds for your own child.
If you want to apply by mail, go to this page, fill out the appropriate form, and mail it to:
Is it safe to purchase Premium Bonds over the internet?
Premium Bonds have no danger to your capital, thus the money you put in is completely safe; the only risk is the ‘interest’. And because Premium Bonds are managed by NS&I, which is backed by the Treasury rather than a bank, this capital is as safe as it gets.
What is the procedure for depositing Premium Bonds into my bank account?
Cheques may not arrive until the end of the month through the mail. If you haven’t gotten your check by the end of the month, please contact us and we’ll send you one.
Premium Bonds reward cheques expire after three months for security reasons. Don’t worry if your check has expired; simply ask us for a replacement.
To avoid issues like these, you can have your wins sent directly to your bank account or reinvested into additional Bonds – both of these options are quick, easy, safe, and environmentally friendly ways to get your money.
Is it possible for me to transfer my Premium Bonds to my daughter?
You’ll have to cash in the bonds you want to give her and send her the money so she may put them to use. “If your niece is under the age of 16, she won’t be able to buy them for herself, but you can give the money to a parent, guardian, or grandmother, who will be able to buy them for her.”
Is it possible to cash in Premium Bonds at the post office?
After July, savers will no longer be able to purchase premium bonds in Post Office offices, according to National Savings & Investments.
Since 1956, the bonds have been sold over the counter, allowing savers to deposit money in a government-backed account in exchange for a chance to win up to £1 million every month rather than receiving interest.
The present contract with the Post Office, however, will not be renewed when it expires on July 31, 2015, due to shifting consumer demand and cost-cutting efforts, according to NS&I.
After that date, bonds can only be purchased directly from the government’s savings provider, via its website, phone, or mail, or by a regular standing order.
One out of every five premium bond sales takes place in a Post Office branch. Over the counter transactions accounted for 750,000 in 2014-15, while direct transactions accounted for 3.2 million. In the same time period, £3.9 billion in bonds were sold in post offices, accounting for a third of all sales by value.
Customers who have recently purchased premium bonds from a post office would be written to and notified of the cessation of over-the-counter sales, according to NS&I’s chief executive, Jane Platt.
She stated, ” “As our partnership with the Post Office comes to an end on July 31st, I’d want to express my gratitude for their support and service to our customers over the years, and I wish them continued success.
“The majority of our clients already purchase premium bonds through direct channels, so NS&I’s move to 100 percent direct sales is a natural next step. Given that these clients already manage and repay their premium bonds directly with us, it should be simple and natural for them.”
Customers have been unable to cash in bonds or make administrative adjustments at the post office since 2013, and have had to deal directly with NS&I for everything but the initial purchase, since 2013.
Despite revisions to premium bonds that cut the smallest reward paid out in half to £25, the savings lottery has remained popular with investors, with over 20 million individuals owning them. The maximum amount that can be stored in bonds has just been increased by £10,000 to £50,000 per person.
The conclusion of the NS&I contract, according to the National Federation of Subpostmasters, demonstrated the Post Office’s issues and the necessity to modernize.
It stated in a statement: “This is very upsetting news, especially for our elderly and more vulnerable clients who rely on subpostmasters for face-to-face assistance with these types of transactions.
“It’s a shame for Post Offices as well, but it’s not surprising. NS&I has made their position clear in recent years, and it is consistent with the government’s larger reluctance to support the Post Office in delivering front-line public services.”
How long does it take to redeem Premium Bonds via the internet?
What is the time frame for redeeming Premium Bonds? Unless you have chosen to cash in after the next draw, it can take up to three banking days for the money to reach your account, according to NS&I.
Are there any disadvantages to Premium Bonds?
Since 1957, National Savings and Investments (NS&I) has marketed Premium Bonds. They are a risk-free option to save because NS&I is supported by HM Treasury and is part of the government.
Premium Bonds do not pay interest, but they do have a monthly prize draw with prizes ranging from £25 to £1 million.
Each bond costs £1 and includes a unique reference number that is used to enter the draw. That implies that for every pound you invest, you may be eligible to win a prize once a month (though it is highly unlikely).
Limitations
Premium Bonds are only available to those who are 16 years old or older. They can, however, be purchased on behalf of children, grandchildren, and great grandchildren and kept by an adult until the child reaches the age of sixteen.
Popularity
In 2008, premium bonds were a big issue. People were looking for a safer way to save during the financial crunch, and Premium Bonds, which are backed by the government, cannot lose their value. People were also drawn to the product because of the increased chance of winning more money.
There are presently 74 billion Premium Bonds in circulation, with approximately three million winning a prize each month.
Potential returns
Prizes range from £25 to £1 million, with lower-value awards being granted more frequently than higher-value prizes.
It’s vital to keep in mind that there’s no assurance that you’ll win anything. The monthly prize pool determines the “average rate of return,” which is now 1.4 percent.
It’s not as simple as assuming that if you buy Premium Bonds, you’ll get a 1.4 percent return. There are several factors that go into determining your exact chances of receiving prize money in that amount, but we estimate that you’ll need to invest roughly £20,000 in bonds to get close to the average return.
This calculator can be used to determine your chances of winning and potential profits.
Advantages and Disadvantages
Is it worthwhile to invest in Premium Bonds? It is entirely up to you to make that decision. Before making any decisions, it’s a good idea to consider all of the possibilities:
You will not see any rewards on your investments if your Bonds are not picked in the monthly prize draw.
Everyone enjoys the prospect of winning a large sum of money! The thrill of the prospect of winning £25 to £1 million for each Bond held is enough to entice some investors.
While the mathematics required to determine your chances of winning are complex, it is currently believed that the possibility of winning any prize is 1 in 24,500 for each individual Bond held.
Premium Bonds are backed by the government, hence there are no risks involved. In the worst-case situation, the bonds purchased are never selected as a reward, and the account balance remains unchanged.
Though the numerical value of your savings cannot be reduced unless you remove money, the real-term value can. Because the cost of living is rising, a stable investment value that does not rise will lose purchasing power over time.
Savings are always tax-free, which is one of the key benefits of bonds: higher-rate and even basic-rate taxpayers can invest substantial sums with no tax consequences.
Since the Personal Savings Allowance was introduced in 2016, most savers have seen no tax liability on their returns. That means savers can invest in vehicles that provide higher returns, and the lack of tax is no longer a distinguishing or compelling feature.
Premium Bonds are backed by the government’s promise to buy them back at the same price you paid for them. That means you can take your money out whenever you want and not worry about being penalized.
After the bonds have been held for a full prize cycle, they are entered into their first reward draw. This implies that Bonds purchased in March will be retained until the prize draw in May. Borrowing from your Premium Bonds could result in you missing out on a successful month.