When considering how much you can invest in premium bonds, the upper limit is £50,000. There are no handling or start-up fees and no minimum or maximum time limits. The important thing to remember with premium bonds is that however much you invest, between £25 and £50,000, determines your chances of winning.
Maximum amount you can hold: £50,000. Age limit: Over 16 to buy them; under that age they may be held in the name of under-16s by parents or guardians.
Having your prizes paid straight into your bank account (or NS&I Direct Saver) is quick, easy and safe. If you win, we'll let you know the good news by email or text message. You'll then normally receive your prize money in your bank account by the 7th working day of the month.
One in a million
Our Agents Million have the important task of delivering the winning news in person to the two monthly jackpot winners. Since the first Premium Bonds millionaire in 1994, over 400 new millionaires have been paid a visit.
If the value of the premium bonds is under £5,000 and you have the premium bonds account details, then you may be able to withdraw the money online. If the investment is over £5,000 then you may need to supply a grant of representation (proof of probate) to National Savings & Investments.
If you want instant access to your cash, have £50,000 to invest, and especially if you pay higher rates of tax they are good value, returning on average around 2pc a year tax-free. But it is a close-run thing as market rates from banks and building societies are rising rapidly. Premium Bonds work like this.
If you want a regular income, Premium Bonds may not be the best option for you - you may be better off looking at different types of investment or savings accounts, including isas. You'll also receive no interest, as the interest accrued on bonds goes towards the prize fund.
We pay out two £1 million jackpots each month.
Our Premium Bonds give you the chance to win cash prizes from £25 up to £1 million in our monthly prize draw. If you're a lucky winner, you won't have to pay a penny in tax on your prize. If you already hold some of our Savings Certificates, you won't have to pay tax on any returns you earn.
Are my old Premium Bonds still valid? Yes. As long as you haven't cashed your Bonds in, they're still valid and they're still being entered into our monthly prize draws.
Note: The three purchase limits above apply separately. That is, in a single calendar year you could buy $10,000 in electronic Series EE bonds, $10,000 in electronic Series I bonds, and $5,000 in paper Series I bonds.
A There are all sorts of theories. However there is absolutely no evidence that holding premium bonds in a single block has a better chance of winning.
Tax and you do not need to declare it on your tax return. Anybody over the age of 16 can buy Premium Bonds, and you can also buy them on behalf of your child or grandchild.
Dealing with Premium Bonds after someone's death
NS&I does allow them to be held by the estate for one year after death and during this time they will still be entered into the prize draw each month. Any winnings will be sent by warrant, which is similar to a cheque, to the person entitled to claim the money.
For security, Premium Bonds prize cheques expire after 3 months. If you have a cheque and it's expired, don't worry – just ask us for a replacement.
How long does it take to cash in Premium Bonds? According to NS&I, it takes up to three banking days for the money to reach your account, unless you have elected to cash in after the next draw.
While Cash ISAs and Premium Bonds are very low-risk, they are unlikely to offer high returns. If you're happy to take more risk for the possibility of better returns, then a Stocks and Shares ISA might be better for you.
Each £1 placed into Premium Bonds has an equal chance of getting a prize, so the more savings you have, the more chance you have of winning. Martin emphasised that Premium Bonds won't pay out much more on average than the interest on easy access or fixed rate savings accounts.
Interest from your bonds goes on your federal income tax return on the same line with other interest income.
A premium bond prize is not taken into account for inheritance tax purposes until the draw allocating it has taken place.
In a calendar year, one Social Security Number or one Employer Identification Number may buy: up to $10,000 in electronic I bonds, and. up to $5,000 in paper I bonds (with your tax refund)
Normally, you're limited to purchasing $10,000 per person on electronic Series I bonds per year. However, the government allows those with a federal tax refund to invest up to $5,000 of that refund into paper I bonds.
$10,000 limit: Up to $10,000 of I bonds can be purchased, per person (or entity), per year. A married couple can each purchase $10,000 per year ($20,000 per year total). 7.12% interest: The yield on I bonds has two components—a fixed rate and an inflation rate.
How long will the money be locked in if you purchase an I bond? I bonds earn interest for 30 years, as long as you don't cash them in before then. You need to hold them for at least one year, and if you redeem them after less than five years, you forfeit the previous three months of interest.
When do savings bonds mature? Savings bonds mature at different times, depending on the series. Series I savings bonds, commonly referred to as "I Bonds," fully mature after 30 years. However, you can redeem them as early as one year after purchase.