Do you play the lottery and do you want to save?
If your answer is yes to both then how do you like the sound of this……. being in with a chance of winning £1 million every month but it not actually costing you anything?
Interested? Let me introduce you to Premium Bonds.
What are Premium Bonds
Premium Bonds are actually a savings account that is 100% secure and backed by government.
You open an account online, deposit your money and rather than get paid interest, your money purchases Premium Bond numbers.
Every month your numbers are entered into a prize draw and prizes range from £25 – £1 million.
You don’t have to keep adding money into your Premium Bond account every month. You will still be entered into the prize draw every month even if you only ever deposit one lump sum.
When you want your money back you just withdraw your savings.
Why are Premium Bonds better than playing the lottery?
Now the odds of winning the £1 million prize on the Premium Bonds is still pretty high, and if you don’t even win some of the smaller prizes then you would have been better off using the best buy savings tables to find an interest paying savings account.
But if you ‘enjoy’ playing the lottery and feel like you have to be in it to win it then why not put the money you spend on the lottery into Premium Bonds instead?
Playing the lottery and not winning means you have lost the money you paid for your lottery ticket, whereas putting your money into Premium Bonds and not winning means you still have your money sitting in your Premium Bond account waiting for the next draw, or being available to be withdrawn.
You need to deposit a minimum of £100 to open a Premium Bond account or set up a standing order of £50 per month. Winnings are tax free. Here’s a brochure that explains more.
This type of ‘savings’ account is great for people who need easy access to this money and don’t want to see the value fall.