Facts about Premium Bonds
Premium bonds are the British answer to the need for savings and the fun of gambling. Each bond you buy will have a specific number. The number of the bond is put into a numbers generating machine and monthly thousands of numbers are chosen randomly to receive a cash prize in lieu of interest. The investment is completely safe and you can cash in your bonds at value when ever you wish. There is a thirty thousand pound cap on the investments so large corporations cannot buy millions of bonds to skew the chance for the common man to win.
Randomness in the Premium Bonds Market
Some people wonder about the randomness of the premium bonds lottery that is conducted each month. The randomness has been under scrutiny in the past and the National Savings and Interest agency, the people who conduct the lottery are scrutinized by an outside agency to provide security so that winners have an equal chance.
Premium Bonds The Best Saving Practice for the British Citizen
There are many ways to save your money. Some people do not trust banks or the government to keep their money and keep it stored in a safe at home or even in a jar in the kitchen cabinet. The money just sits there with no interest and no chance of earning anything but a layer of dust. This is a sad way to save for a rainy day. The money could be in a savings account earning interest or it could be invested in the stock market where the money could earn a lot or maybe be lost if the market fluctuates negative. The smartest thing for the British investor to do with their money is to buy premium bonds.