Best way to buy Premium Bonds? And diversify?

buel

Hi,
A friend has over £4000 in a cash ISA and a few hundred more spare.
Instead of just putting it in the ISA, he would like to spread it about a bit/diversify.
He wants to just buy a few Premium bonds to start.
Please can i ask for any tips on buying them, such as the best way?
And any other tips on diversyfing? Bearing in mind he has a few hundred spare every few months?
Thank you in advance.

markwilkinson

As far as I am aware premium bonds are only available through National Savings & Investments.

opinions4u

Why would you want Premium Bonds?

No interest, and a tax free prize fund of just 1.50%.

There's no secret on how to buy them. Just go to http://www.nsandi.com/savings-premium-bonds

Ifts

buel wrote: »

Please can i ask for any tips on buying them, such as the best way?

Give NS&i a call on 0500 007 007 (lines open till midnight 7 days a week)

As far as I'm aware of you can buy them over the phone using a debit card to pay for them.

Only tip I have for you is if your friend does buy some, then buy them as close as possible near the end of the month as you have to hold them for one clear calender month (after purchasing) before they are eligible for the monthly prize draw.

IIRC You used to be able to buy them over the phone or the internet on the last day of the month using your debit card. So for example if you bought them at the end of this month (29 Feb), you would have to hold them for one whole month (March) and then they will be eligible for Aprils prize draw.

buel

Ifts, that is brilliant, thank you so much, i'll pass it on!!!

Why would you want Premium Bonds?

No interest, and a tax free prize fund of just 1.50%.

I see your point but surely just £100 worth or so cant hurt?
Better chances than the lottery?

opinions4u

buel wrote: »

I see your point but surely just £100 worth or so cant hurt?

Ah, that's different. I wouldn't put a serious amount in though.

Better chances than the lottery?

From memory, the lottery jackpot is a 14,000,000 / 1 shot.

Premium Bonds (smaller jackpot) 19,000,000 /1.

Andystriker

You can buy them by sending a faster payment from your bank account. If you do it this way the minimum amount is £50.

Any other way then the minimum is £100