The best way of tax-free savings and capital protection is National Savings Premium Bonds. National Savings & Investments (NS&I - nsandi.com) Premium bonds were launched in 1956 to reduce inflation in UK. Premium Bonds were the lottery of the day in the early years. They pay out a £1 million jackpot and hundreds of thousands of other tax-free prizes every month.
These bonds are one type of loan to the government, and government pays monthly 1% interest not in account but tax-free prizes, or premiums to randomly selected bond holders. You have no need pay capital gains tax. It also dependa on your bonds, the more bonds you have and the chances of your winning are better.
Government holds a prize of a £1 million jackpot. You can buy Premium bonds from the National Savings investments web site.
Advantages:
- This investment is not only for capital protection but also offer the fun and excitement of a chance of a big win.
- The age of 16 or over can buy and also be bought on behalf of under-16s by parents and grand-parents.
- Anyone aged 16 or over; can also be bought on behalf of under-16s by parents, guardians and grand-parents.
- Invest between £100 and £30,000
- No fixed investment term
- Prize draws Instead of paying interest, Bonds are entered into monthly prize draws. keep in mind that inflation can reduce the true value of your money over time.
- These bonds are Free from UK Income Tax and Capital Gains Tax
- Huge prizes, although it depends on the Bank of England base rate, several millionaires are created each and every month;
- Premium bond winners are drawn completely at random by an electronic computer called Ernie;
Disadvantages of Premium Bonds
- No interest is paid and many investors won’t earn a currency from their investment. This can create a problem for the elderly and those on fixed incomes.
- Returns are fractionally lower than the bank base rate meaning that other tax-free investments, such as a cash ISA, offer better returns;
- The chances of winning a £50 prize are in the region of 37,000 to 1 each month. Worse still, the chance of winning the million pound jackpot is 19.3 billion to 1;
- Unclaimed premium bonds. According to a BBC article, 500,000 premium bond prizes worth £30 million remain unclaimed;
Visit www.nsandi.com for more details.
I would like to call customer ser vices from Switzerland, but cannot access your free nr. from here. please give me a number, or an e=mail address, where I can reach you. Thank you
You are apparently inviting me to buy premium bonds on line but you provide no clear directions to do so on the site. Please advise