Investment and the lottery are more similar than many would come to believe. For many years now people in the U.K have been making use of a service which offers an investment opportunity as well as a chance to win large amounts of money that is absolutely tax free. This service has been steadily rising in popularity and this rise is allowing everyone involved to stand a chance at profiting even more from a Premium Bond.
In order to stand a chance to win you will need to buy a Premium Bond. This bond can be sold back to the bank for the amount that it was bought. This might not be seen as a very lucrative investment opportunity but the prizes that you stand to win are very large. This is what makes this opportunity so appealing; you will not be risking money for the chance to win an exceedingly large amount of money.
The bonds that are purchased are placed into a system that randomly picks the winning bonds. A premium bond can be used over and over again until the holder wins a prize. If the holder decides that they no longer want to stand a chance to win then they simply need to sell their bond back to the bank. This system ensures that they do not lose any money in the event that they want to withdraw.
The prize draws are held every month and this gives the bond holders more chances to win. The prizes range from small to very large and the winners are chosen randomly by a specialized system called ERNIE.
The random selection of the winners is ensured by this system as it generates random numbers which are then matched to the bond holders. The bond holders that have won prizes can then claim their money and request it through a direct bank deposit or a cheque.
Many people see this system as a way to stand a chance to win a lot of money without having to risk their own. This might not be an investment where you are guaranteed an increase in your profits but many people see it as a safer method of possibly winning a lot of money.
In order to stand more chances of winning they suggest that you purchase more bonds each month and the minimum amount per purchase is £100. This can be lowered to £50 per order if you have a standing order with them.
Anyone in the U.K can purchase a premium bond and this bond will then be recorded in their name. A certificate is then issued and the details concerning the bond must be safely stored by the bond holder. This certificate is renewed every time the holder purchases another bond or wins a prize attached to a specific bond. The old certificate can then be discarded but the bond holder must keep the latest revision so that he or she can prove the ownership of that bond in the event that they win a prize.