One of the mysteries of the English language finally explained.
(in the UK) a government security that offers no interest or capital gain but is entered in regular draws for cash prizes.
- ‘The current prize fund rate for Premium Bonds is 2.25%.’
- ‘He was part-owner of at least 13 race horses and salted away cash in Premium Bonds, shares and cars, while encouraging one elderly victim to remortgage her property to get his hands on more.’
- ‘Do you have any Lotto tickets or Premium Bonds lying around?’
- ‘You can cash in your Premium Bonds at any time, by completing a repayment form (available from the Post Office).’
- ‘In return for loaning the Government money, you are rewarded by receiving your interest tax-free (and in the case of Premium Bonds, by winning prizes).’
- ‘They were her first acting wages, so we're going to get copies of the cheques and buy Premium Bonds for her.’
- ‘With Premium Bonds, you don't earn interest on your capital.’
- ‘One of your Premium Bonds has won a prize and a warrant for the money is enclosed.’
- ‘The prizes from Premium Bonds are also tax-free and you can invest up to £30,000.’
- ‘If you like the idea of winning money, why not buy Premium Bonds?’
- ‘Set up by the Government in 1956, Premium Bonds were launched to ‘reduce inflation and to encourage thrift among those who were attracted not by earning interest but by winning prizes’.’
- ‘The top prize in 1957 was £1, 000 and nearly £100 million was invested in Premium Bonds in the first year.’
- ‘Rather than paying interest, Premium Bonds offer savers the chance to win tax-free prizes ranging from £50 to £1m each month.’
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