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Are Premium Bonds Worth It?



Millions of individuals are investing in these bonds and some are questioning if they are truly worth it. Premium bonds were introduced in 1956 as a way to get the public to invest into the British Government. Nearly twenty million people, a third of the population now owns at least one premium bond.


Because rates of interest are falling, superior bonds are seen as a safe way to invest and at the exact same time have the adventure of winning one of the over million and a half prize money granted every month. Fifteen percent of the prize money is used for high prize money and another fifteen percent is utilized for medium cash prizes. The staying seventy percent of the money was used to award lower rewards that are as high as fifty pounds. A fifty pound prize on a one bond is almost a 500 percent return. Today you have a 1 in 21,000 chance to win, however with the bonds becoming more popular, those chances might be greater in the future.


You have to purchase at least one hundred pounds to invest in exceptional bonds and you can just have thirty thousand pounds in an account. The bonds are backed and protected by the national treasury. Many moms and dads buy premium bonds as a method to pay for their children's college.


Unlike lottery tickets, the exact same bond can win over and over. It is a matter of statistics that the more bonds that are purchased the lower the chance that your bond number will be picked.


The chances are still better than the American lottery game due to the fact that you do not have to buy a different ticket each time. You can discover if your bond number is picked by looking at the National Saving and Invest site. Here they note all the winning numbers and all you need to do is call or call them for you to claim your reward. It is tape-recorded that the National Saving and Invest firm has over 5 hundred thousand unclaimed prizes that they are holding for claimers.


Millions of people are investing in these bonds and some are questioning if they are truly worth it. Premium bonds were presented in 1956 as a method to get the public to invest into the British Government. Since interest rates are falling, premium bonds are seen as a safe way to invest and at the exact same time have the thrill of winning one of the over million and a half money rewards awarded each month. You have to purchase at least one hundred pounds to invest in exceptional bonds and you can just have thirty thousand pounds in an account. It is a matter of stats that the more bonds that are bought the lower the chance that your bond number will be selected.

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