Feeling lucky? Premium bonds are the fun side of saving.
Rather than just giving your grandchildren some cash, start saving and give them the chance to win tax free prizes every month. You might create a millionaire!
Every £1 Premium Bond bought from National Savings-gets put into a prize draw each month.
Numbers are drawn at random to win prizes from£25 to 2 £1m jackpots each month, although just over 50% of prizes are only £25. All prizes however, are tax free.
The prize fund return is roughly equivalent to 3% each year.
The odds of winning are 24000 to 1.
The maximum holding of premium bonds is £50,000.
Nothing is guaranteed but the bigger the holding the better the odds.
Unlike the lottery you will get back your stake if you cash in your Premium Bond.
Next week we’ll look at Bare Trusts as part of our series looking at how parents, guardians and grandparents can help invest in a child’s future. There are links to the articles already published below.
1. Children’s Savings Accounts
2. Junior ISAs
5. Bare Trusts
And if you want to discuss any on the above, you can call us on 0131 226 6700.
* The value of an investment may go down as well as up, and you may get back less than you originally invested.
