How to Buy British Premium Bonds

Written by catherine hiles
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How to Buy British Premium Bonds
Premium bonds are an alternative investment to an interest-gathering savings account. (new 20 pound notes image by Fyerne from Fotolia.com)

Premium Bonds are a type of investment that are entered into a monthly prize drawing rather than gathering interest. Prizes are tax free and range from ₤1 million to ₤25. Premium bonds have been available to U.K. citizens since 1956 as a way to reduce inflation and to attract people more interested in winning prizes than earning interest. You can buy Premium Bonds online with a credit or debit card.

Skill level:
Easy

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Instructions

  1. 1

    Go to the National Savings and Investment website at nsandi.com.

  2. 2

    Click on the link that reads "invest now" on the top right hand side of the home page, under the Premium Bonds subheading.

  3. 3

    Read the terms and conditions and click "I accept." A new window will open.

  4. 4

    Enter the amount of money you wish to invest in Premium Bonds. The minimum amount is ₤100. Select "yes" or "no" in answer to the question,"Have you ever held Premium Bonds?" Enter your holder's number in the box if you selected "yes." Click "next."

  5. 5

    Enter your personal details in the boxes provided if you have not held Premium Bonds before. Select the best way for National Savings and Investment to contact you should they have any questions. Click "next."

  6. 6

    Select your address from the list and click "next."

  7. 7

    Click "next" to verify your address.

  8. 8

    Enter your debit or credit card details in the spaces provided and click "next" to purchase Premium Bonds.

Tips and warnings

  • If you wish to pay with a check, or buy premium bonds for someone other than yourself, you need to apply at your local Post Office branch in person.
  • Call 0500-007-007 any day between 7 a.m. to midnight GMT to purchase Premium Bonds over the phone with a credit or debit card.
  • If you wish to set up a standing order, you may do so through your bank or by filling out the standing order form (see resources) and sending or taking it to your bank or building society. The minimum monthly investment for a standing order is ₤50.

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