Premium Bond Investment Limit Increased to £50,000

From 1st June 2015 the investment limit for Premium Bonds from NS&I increased from £30,000 to £50,000.

Whilst Premium Bonds have valuable benefits, and have their place in a diversified portfolio of investments, are they right for you?

Premium Bond ‘winnings’ are tax free. You are guaranteed to get back the original capital invested upon surrender, and can surrender bonds at any time without notice. Whilst you are not guaranteed to get a return, you do have the chance of winning large sums, far exceeding any rate of return offered by other types of guaranteed investment.

On the other hand, the scheme is like any other lottery – you are not guaranteed to get a return at all. It is all down to the luck of the draw as to whether you ‘win’ a return on your investment. The average ‘winnings’ equate to a return of 1.35%, however this is in no way guaranteed.

If you are looking for a guaranteed return, or are looking to receive an income from your investments, they might not be right for you, so do make an appointment to get some advice on their suitability for your circumstances before investing.