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Premium bond help
Get help and advice with premium bonds. Investing in premium bonds is one of the safest investments possible.
| This is due to the investment being secured by the British Treasury. To lose money invested in a premium bond the UK government would have to go into some form of bankruptcy. In the current financial climate that probably seems more likely than it acutally is.
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It is very rare for a government to fail in this manner although there is the famous case of Russia.Premium bonds remain a much more reliable investment than investing in private bonds and shares. You are backing an entire country as opposed to an individaul corporation which spreads the risk very well. The return from premium bonds is not good. Currently at 1.5% as of December 2009 the money is put into a prize fund. The prize fund distributes the money to bond holders in prizes ranging from twenty five to a million pounds. The lottery effect explains the popularity of premium bonds with every single investor holding a chance of becoming a millionaire.
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