4 reasons I love Premium Bonds

Managing your wealth isn’t all about investing.

There is so much you can be doing with your money that is smart, gives you opportunity, and creates more freedom.

Fundamentally your wealth is the source of your financial wellbeing. Therefore, what you do with your money should be aligned with this principle.

That is why I love National Savings & Investments’ Premium Bonds.

We all need to have a lump sum ready and accessible for that rainy day. But, with cash rates so low, keeping your money in cash can be demotivating and a turn-off.

Why save up and keep the money for that rainy day in cash if it's losing value in real terms?

I hear you.

However, with Premium Bonds, you get so much more for your money and the potential reward is both motivating and freeing.

4 reasons I love Premium Bonds for my emergency fund.

  1. You are entering a monthly lottery! Without risking your capital. Instead of receiving a monthly interest, your number is entered into the draw and you have a chance of winning a prize. The prizes range from £25 to £1 million. There are 2 bondholders a month chosen to win the £1 million.

  2. The annual prize rate is currently 1%. If you hold your emergency fund in cash, you won’t likely earn this level of interest. So, why not risk your potential interest and have a chance of winning. Especially if you have a decent lump sum in excess of £5,000 to invest.

  3. Winnings are paid tax-free. Although this feature isn’t as attractive as it used to be due to the personal savings allowance (PSA), it is still useful for those of you who are higher or additional rate taxpayers, where the PSA is just £500 or £0 respectively. You won’t ever need to do a tax return for your premium bonds, you can sit back and relax.

  4. NS&I is as safe as you can get, so you can rest assured that your investment is safe, despite it being added into a lottery.

It is all about being smart and finding opportunities, you never know, if you believe in manifesting your success maybe you will be one of the 2 monthly lucky winners to get the £1million jackpot.

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