NS&I Premium Bonds are no longer available at Post Office branches or on our website as of August 1, 2015. NS&I took this choice as part of a long-term goal to encourage clients to use its direct channels.
We continue to offer a wide selection of savings products at the Post Office to fit our customers’ needs, including ISAs, Instant Saver, and longer-term investments like our Fixed Rate Bonds, which are accessible in branch and online.
What is the most convenient way to purchase Premium Bonds?
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.
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:
Payroll Savings Plan
In the United States Savings Bond Program, the Postal Service collaborates with the Department of Treasury. Employees can authorize withholdings from their pay to buy bonds under the programme.
Notification
The PMG chairs an annual bond drive and names a vice president to serve as vicechairperson. To carry out the effort, the vicechairperson appoints a national coordinator and functional coordinators. The push is mostly performed through direct mail to employees.
Employee involvement in the Savings Bond Program through payroll allotments is encouraged throughout the Postal Service through this program. Except for those in timelimited or intermittent appointments, all employees receive complete information and have the option to join the plan or raise their current allotments. This decision must be made alone by the employee, without any direct or indirect pressure or coercion.
Employees are reminded of the financial benefits of bond investing on a regular basis. Impending retirees are told about the benefits of converting Series E bonds for Series H bonds. The benefits of the program must be explained to all new employees. Each employee is given the opportunity to participate in the payroll savings plan during their orientation.
Enrollment
To allow deductions by pay period and to change deductions or bond denominations, employees fill out PS Form 1192, U.S. Savings Bond Authorization for Purchase and Request for Change. The completed form is delivered to the Eagan Accounting Service Center (ASC) for data entry during the yearly Savings Bond Drive. Authorization forms that require data entry are transmitted to the local distributed data entry/data recording (DDE/DR) site at all other times.
An employee can cancel the authorization at any time by writing to the payroll office and demanding revocation. Discontinuance takes effect the first pay month following the payroll office’s receipt of the written revocation.
When deductions are sufficient to pay for bonds, the Eagan ASC issues and mails them. Bonds with a face value of $100 or more are dated on the first day of the month in which the pay period ends and at least half of the purchase price has been accumulated. If an employee is separated from service or withholding authorisation is canceled, the ASC refunds any withheld deductions that are insufficient to acquire a bond.
Employees’ personal information is contained in bond allotment records. As a result, these records must only be handled and shared in accordance with the Privacy Act and its implementing regulations. Under USPS 050.020, Finance Records Payroll System, allotment records and accompanying communications are kept in the privacy system.
Reports
The Eagan ASC generates statistics that reflect the number of employees actively registered, as well as their percentage of participation, by performance cluster and location. No lists or reports containing the names and/or titles of participants or non-participants in the bond program are to be established or retained.
Is buying Premium Bonds in bulk better?
Q I have £27,000 in premium bonds that were issued in blocks of £2,000 and £1,000, and my winnings have been poor (£600 in the last three years).
Could you kindly tell me whether there is any evidence that holding one entire block rather than having them divided up as they are now would be better? I realize that if this is asked, it can be done, but I will forfeit one month of participation in the drawing.
A There are numerous theories. There is no evidence, however, that owning premium bonds in a single block increases your chances of winning. Otherwise, it would have become well known very quickly.
The R in ERNIE denotes a ‘random’ (Electronic Random Number Indicator Equipment) selection of the winning numbers, which has been the case since the inaugural draw in 1997. Each month, ERNIE is designed to select 2.5 million numbers, which are subsequently matched to 1 million eligible bonds (many of the numbers include bonds not yet sold or those which have been cashed in).
Since the introduction of the national lottery, premium bonds have grown in popularity to the point that total holdings are now about £25 billion, making the odds of winning the single £1 million top prize astronomical. The average payout is set at 3.2 percent net, but this covers all of the rewards given out, implying that the government is borrowing money at a low rate.
The fact that the earnings are tax-free on an investment where you can always get your money back is a major selling point. Unlike the lottery, which is a zero-sum game. You could sell your bonds and then buy them back to cover consecutive numbers. However, as you point out, this will cost you a month in the draw and will not increase your chances of winning. Don’t get too down on yourself. It appears that investors frequently receive nothing or very little for long periods of time before experiencing a run of excellent fortune.
Is there anyone who has ever won a million dollars playing Premium Bonds?
Hannah won the £1 million jackpot for the first time in August 2004. Her winning Bond, 50HXH949682, was purchased with a £3,000 investment in February 2003.
“On a Sunday afternoon, Agent Million arrived. It had a significant impact on my life. When I found out what I’d earned, I almost passed out. I was completely taken aback.
“I was living on a £108 pension a week before I won, so you can imagine how much that altered my life.” I acquired a house and immediately invested the maximum amount (in Premium Bonds). I still earn £50 a month, and to be honest, those victories give me almost as much pleasure.
“I’ve only informed a few people, just those who could share the secret while remaining normal.” I do occasionally tell others that I’m having a great time thanks to ERNIE.”
How can I set up a Premium Bonds standing order?
It’s all handled by your bank. Simply contact your bank and let them know how much you want to transfer and when you want it done. Most banks allow you to do this online or via their mobile banking app, but we also have a form that you can fill out and submit to them.
Keep in mind that if you want to cancel or change your standing order, you’ll need to contact your bank as well.
Is it possible to lose money on Premium Bonds?
No, because NS&I is a Treasury-approved and regulated company rather than a bank, your money is completely safe.
Even if you’re a bad luck client who never wins, the money you invest in Premium Bonds is protected. Although not always in terms of money’s true value.
Your money is dwindling in terms of what it can buy unless you win enough to stay up with the rate of inflation, which is currently 0.9 percent.
Is it possible to cash savings bonds at a post office?
If you want to cash in your savings bonds, you can do it in one of two ways. Neither affects the United States Postal Service, which is prohibited from cashing bonds. Whether you have old-fashioned paper bonds or the newer electronic kind, the redemption technique is different.
What caused the USPS to quit banking?
The Postal Savings System was founded in response to lobbying by farmers and workers who had complaints with the private banking system due to many bank closures and insufficient credit alternatives. The system accepted general public deposits but did not provide complete banking services. Instead, it redeposited the monies in interest-bearing accounts at approved banks. To cover administrative costs, it collected half of the interest and transferred the restroughly two percenton to the consumer. The system’s initial balance maximum was $500, which was raised to $1,000 in 1916 and then to $2,500 in 1918. Until the Great Depression, when high rates of use were no longer “restricted to certain locations and particular groups,” immigrants, workers, farmers, and individuals living in rural parts of the West and Midwest were the most likely to use the Postal Savings System. The system had about $3.4 billion in deposits at its height in 1947. The system sold fixed-term bonds and ran a Savings Card program in addition to accepting cash deposits. These cards had a certain amount of postage stamps that could be purchased for a few cents each. The cards could be presented for credit to a system savings account after they were filled.
Depositors have been fingerprinted since 1921. This was originally intended to be “unrelated to criminology,” but in some cases, the Yours Indeed, according to the Johnny Dollar radio show from the early 1950s, fingerprints from Postal Savings accounts were utilized for definite identification in criminal cases.
“The program was initially used by non-farming immigrant communities for short-term saving, then as a safe haven during the Great Depression, and ultimately as a long-term investment for the wealthy during the 1940s,” according to a 2019 report. Postal Savings was just a partial alternative for traditional banks, as postal savings was still heavily employed in regions where banks were present.”
What bank will cash a savings bond if you don’t have an account with them?
- West Bank/East Bank (California, Georgia, Massachusetts, Nevada, New York, Texas, and Washington)
- People’s United Bank is a financial institution based in the United Kingdom (locations in Connecticut, Maine, Massachusetts, New Hampshire, New York, and Vermont)
Remember that virtually all of the banks only recorded money investment funds securities for account holders. Only Chase and TD Bank will cash a savings bond for non-account holders; non-account holders can cash investment funds securities up to $1,000 at the other institutions we contacted.