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Introduced in 1956 by Harold Macmillan, Bond is defined as a par-premium than a government bond prices higher. According to the National Savings and Investments (NS & I), about 23 million people are holders of premium bonds.
Issued by the British government national savings and investment regime and secure a premium easy way to keep prices save money with the chance to win tax-exempt bonds. It ensures that investors their capital is 100% secure.There are generally two types of premium bonds - non-callable bonds and callable bonds.
A debenture premium invested money in the government. Instead of paying interest of bondholders, the government pays the prize money in a fund and is the holder of the bond, the opportunity to win prizes tax-free. Names Premium Bonds can not be pooled and are not transferable to other people . One of the biggest advantages is that all or part of premium bonds can be repaidwhenever you want.
Holder of the bond is associated with a range of numbers for every £ 1 invested. For example, 100 numbers link to purchase 100 pounds of loans are made available. Therefore, the Noteholder has 100 chances to win a prize. The random number generated by a machine called the Electronic Random Number Indicator Equipment (Ernie). Every month a draw is made and the bondholders can do nothing to gain from £ 50 to £ 1,000,000. Taking premium, is the draw free of income tax in the UK and capital gains tax.
Premium bonds can be an office or can be purchased by phone Get the registration form from the Post. The application can also be downloaded from the Internet. Bonds at a premium to an investor to invest a minimum of £ 10 100, are sold in multiples of £. The maximum contribution limit is up to a total capacity of 30,000 pounds. All of those obligations is 16 years or over can apply for awards. For children under 16 yearshave> bought premium bonds are the caretakers of their parents, either
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