The amount that your clients can invest is £50,000, giving investors more chances to win tax-free prizes. In addition to this ERNIE picks two £1million jackpot winners.
Who is this suitable for?
- Clients wanting the chance every month to win a £1 million jackpot and other tax-free prizes
- Clients wanting to make the most of tax-free investment opportunities
- Clients that have £100 or more to invest
- Clients who want 100% security for their money
Who is this not suitable for?
- Clients wanting a regular income from their savings
- Clients who are looking for guaranteed returns
- Clients who are concerned about inflation eroding the value of their savings
- Clients who want to buy them as a gift, unless for their child, grandchild or great-grandchild
FAQs about Premium Bonds
No. ERNIE – the Premium Bonds draw machine – generates random numbers in the monthly draw. The first one that comes out that matches a Premium Bond number wins the first £1 million jackpot, and so on. So it is completely random
It’s true to say that more Bonds have been bought since 2000, so consequently there would be more recent winners. However that’s not always the case. For example in 2004 the £1 million jackpot was won by a customer with only a £17 holding, who bought them in 1959!
Clearly the more Bonds held the greater the chance of winning. However it is completely random and someone with only £400 invested in Premium Bonds won the £1 million jackpot in the first draw of 2015. In 2004, the same happened with a client who held just £17 in Premium Bonds.
Although it’s true to say more Bonds are held in the South East of England than anywhere else, winners regularly come from other parts of the country. For example both winners of the £1 million jackpot in the January 2016 draw were from Leicester.
No. Premium Bonds were designed as a tax-free product and the maximum holding limit gives individuals the opportunity to have a potential tax-free return by way of the prize draw. The Premium Savings Bond Regulations do not allow for Premium Bonds to be invested in by a trust as the investment was created for individuals to invest in. Only solely named individuals can invest in Premium Bonds - the regulations do not allow joint investors or anybody, whether incorporated or unincorporated, to invest in Premium Bonds as this would go against the intention of the investment