Want a chance to win £1 million? gamble without losing - Let’s talk premium bonds

Premium bonds is a savings product backed by the U.K. government that allows you to save and enter the chance to win prizes with up to £1 million instead of earning interest.

 What you need to know

• Start investing at £25 per month
• Your money is 100% secure
• Each month you enter into a raffle to win prizes worth £25 to 1 million tax free
• You will not earn any interest (prizes are used instead). It might be better to use an savings account with interest rates 
• You can always withdraw you money

I recently found out about premium bonds whilst reading a money diary entry on Refinery29.co.uk. The diary entry said she put away £50k in premium bonds- this piqued my interest and I quickly visited NS&I to learn more.

How do Premium bonds work?
Premium bonds allows you to save monthly, it’s fully secure which means the risk of losing your money is very very low. Instead of paying monthly or annual interest to participants the equivalent interest amount is shared as prizes. 

Each month a prize draw takes places and you can find out if you win. The odds are 24500 to 1- not a very high chance but the more you save, you more chances you get. In addition, whatever you win is tax free and your money can with withdrawn at anytime.

Can premium bonds grow my money?
If you are the person that has  always wanted to gamble without the risk- this might be for you. 

Pros

• You can withdraw your money anytime
• With luck, you can win a few prizes. The minimum you win is £25

Cons

• Your money never grows and falls behind inflation 

How to register for Premium bonds 

1. Go to NS&I to open a Premium Bonds account( you can make a lump sum payment of a monthly payment)
2. (Optional) Set up a direct debit 
3. Download the app to track progress 

How I plan to use Premium Bonds
Having assessed the pros and cons, I’ve decided to allocate a minimum of £25 a month into this savings product. This is a very, very low risk strategy and since I won’t be losing my principal (the money I put in monthly) I am happy to let it it be my - I hope I get LAS VEGAS lucky magic growth pot’.