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.
How to Claim Your Premium Bonds Winning
Premium bonds are a great way to save money and at the same time have a chance to winning up to a million pounds. Each one pond bond has a unique number on it that is put into an automatic number generator machine that produces numbers for a monthly lottery. If your number is picked you and a million and a half other investors have a chance to win a cash prize from fifty to a million pounds. If you have premium bonds you have twelve chances a year to receive a significant amount of money in lieu of the percentages from a regular savings account.
Premium Bonds and the Difference Between NSI and Banks
When looking for investments such as premium bonds, you might be confused by the difference between a bank and the National Savings and Investments. Banks are usually private institutions. When you save you receive an interest on your money. The interest is determined and set by the bank which generates profit off of your money. The profit is then shared by the owners or if it is a credit union, the members share in the profit. The Savings and Investments is an agency of the British government. When you invest your money goes to pay for governmental expenditures and the government guarantees the safety of your money. You can't find that kind of guarantee at a bank.