NS&I launches new Premium Bonds regular savings scheme
A fun, secure and easy way to save tax-free each month, the new scheme will allow customers to set up standing orders for Premium Bond purchases from £50 upwards, with no limit on how much can be invested each month providing the customer does not exceed the maximum holding of £30,000.
Encouraging regular savings
Research from NS&I has found that less than two-thirds of people actually save on a regular monthly basis. The new Premium Bond scheme is easy to set up and means customers don’t have to worry about remembering to make regular transfers. Customers who already have Premium Bonds can set up a standing order straight away, new customers will need to make an initial purchase of at least £100. Customers should ensure the standing order will not take them over the maximum £30,000.
Standing order mandates will be included in all welcome packs for new Premium Bond purchases or can be requested by calling NS&I on 0845 964 5000.
The Premium Bond Renaissance
The popularity of Premium Bonds has grown dramatically over the past five years as the amount invested has more than doubled to over £25 billion. Nationally, 23 million people hold Premium Bonds. On average, customers make new investments worth £400 million each month and over 140,000 customers already make multiple investments throughout the year. This new scheme provides an easier way to invest regularly.
How to buy Premium Bonds
- Using a debit card and calling NS&I on 0500 007 007
- Downloading an application form from the NS&I website at www.nsandi.com
- Requesting an application form from NS&I over the phone at 0845 964 5000
- Completing an application form available at any Post Office branch and investing over the counter or posting to NS&I
- Set up a standing order to make monthly purchases of £50 or more after an initial purchase
How Premium Bonds work
Premium Bonds go into a monthly draw and, if ERNIE – the Blackpool-based number cruncher – produces numbers that match a Premium Bond held by a customer, a prize, ranging from £50 up to the £1 million jackpot, is awarded.
In October 2004, over 1 million prizes worth £65 million were awarded. The overall value of prizes paid out each month is based on the prize fund rate and the number of Bonds in the draw. This means the more money invested in Premium Bonds, the higher the overall value of prizes awarded. The prize fund rate is currently 3.2% p.a. following a double rate rise on 1 October, and the odds are currently 24,000 to 1.
Like all National Savings and Investments products, Premium Bonds offer investors 100% security, backed by HM Treasury, as well as the sense of fun that comes from winning tax-free prizes.
Other NS&I regular savings products
You can also make regular payments via a standing order into three other NS&I savings products. Standing order forms are available for the Easy Access Savings Account, Investment Account and cash mini ISA on 0845 964 5000.
Notes to Editors
- Customers must be over 16 to set up a standing order. You cannot purchase for a child under the regular purchase scheme.
- The standing order must be set up so that it comes from your own bank or building society account as under the premium Bond terms and conditions you cannot purchase bonds on behalf of someone else
A full history of Premium Bonds and a wide selection of photography is available from NS&I. Contact the media team for more information.
NS&I is the exclusive sponsor of IX Investor 04, a one-day exhibition at London Olympia, designed to help private investors get the best return on their investments. Investor 04 is on Saturday 23 October 2004. More information at www.ix-expo.com.