Many Premium Bond holders have had to wait a long time for their first prize win, with some waiting decades before striking it lucky. But does it really pay to wait? As the latest high value prize winners have shown, the answer is a resounding yes. For one lucky millionaire, the wait was nine years before he won his first prize with Bond number 210ST2364184.
Since the introduction of the new Bonds in 2013, there have been 24 high value prize winners, with two making it into the millions. This has reminded Britons that if they keep their Premium Bonds, they can still win substantial prizes. This has also highlighted that it can be worth checking old Premium Bonds to see if they have any prize winning numbers.
Premium Bonds are a popular savings option amongst Britons. You invest a minimum of PS10 per month and your money is entered into a monthly prize draw. If you win a prize, your bond number is checked and the cash prize is sent to your bank account or reinvested into more bonds.
While Premium Bonds don’t earn any interest, they do attract a tax free prize fund rate and are 100% backed by the government. They aren’t as tax efficient as a regular savings account, however, as inflation has a significant effect on the buying power of your investment. In fact, if you leave your Premium Bonds invested for a very long time, you could end up losing a large proportion of their original value through inflation.
With the current base rate of just 0.5%, it’s no wonder that people are seeking higher returns on their investments. But is it a good idea to move your savings out of Premium Bonds and into a best buy savings account? We’ve put together this guide to help you decide.
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If you’ve inherited Premium Bonds, you can choose to cash them in or transfer them to a friend or family member. If you’re transferring them to someone else, they must be over 16 and have a valid UK address. You can download the relevant form from NS&I or call them on 0345 300 0000. The executor or next of kin will then become the new bondholder and are eligible to receive tax-free prize funds in the same way that the deceased did. They will also be eligible to continue to enter the prize draws.