Who Can Purchase Premium Bonds?
Premium bonds are the most unique way of saving money in Great Britain. In increments from a hundred pounds to up to fifty thousand pounds, the government will secure your money. The government will use your money for civil projects and in return, the bond numbers on your bonds will be put into a monthly lottery where you have a chance to become a millionaire. The bonds are able to be cashed in at anytime, but if you didn’t win any of the lottery prizes, you will just get back the cash you put in. This is a great way to save money and at the same time have a little fun gambling with fate.
Who can purchase these bonds? Any British citizen sixteen (sorry changed to 18 in 2021) years old and older can purchase premium bonds. A young person can start a nest egg for bail, college or for later life and an adult can save money for a rainy day or for their retirement. Not only is the money in a safe and secure place, they have a chance to earn anywhere from fifty to a million pounds if their bond number is picked. At least two bond holders a month become millionaires.
Non-British people may buy premium bonds only in Britain. Postal law does not allow bonds or prize money to be mailed. You have to go to Great Britain in person and purchase the bonds from a post office or the National Security and Investments agency. If you win a cash prize, you need to schedule another trip to the island to pick up your money. The prize money is tax free in Great Britain, but you may have to check your nation’s laws about how much money you bring back to your homeland without paying taxes or tariffs.
Premium bonds can be redeemed at cash value without loss. So if you are a foreign investor and need your money, you would have to make a trip back to Britain to get your funds. There are certain restrictions and fees for carrying a large amount of money so you might make arrangements with a British bank to transfer the funds for you. There is also the concern of currency devaluation. The pound might fluctuate and you would have to suffer the loss during the exchange of currencies. A severe depression on either shore could cause a substantial loss. You would have to watch the money market closely to insure your money was safe for withdrawal
When foreign investing to ensure your money is in safe hands you could make a formal arrangement with a British national to purchase the bonds for you. The bonds would be in that persons name and a legally binding agreement would have to be made with that person so that you could cash in your bonds or claim a prize. A certain percentage of the prize money would have to be paid to that person for letting them use your money and their name. A British barrister and an attorney from your country would be advised.
