Buy Premium Bonds By Telephone

The answer as to why is easy. BUt first are you sure it's wrong - while you could call up in the past - didnt they require an application form if you didnt have any existing premium bonds.

And the reason both Ceefax and teletext have it is the following press realease. Many journalists write off the back of press releases (not me - as i'm not a 'news' based journalist i make up my own subjects). And to be fair as NSI are saying it - they would be the source.

For your info here is the release

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Put a call in to ERNIE
Customers now able to invest in Premium Bonds over the phone
From 12 July, customers will be able to invest in Premium Bonds over the telephone by calling 0500 007 007. National Savings and Investments (NS&I) has developed a new service that allows customers to invest from the comfort of their own armchairs, without having to fill out an application form.

The new service will be the quickest way to invest in Premium Bonds, taking just a few minutes over the phone using a debit card. Customers will then be sent a confirmation form to sign and return to NS&I. It's easy to do, whether on a regular or one-off basis.

The popularity of Premium Bonds has grown dramatically over the past five years as the amount invested has doubled to over £24 billion. Nationwide, 23 million people hold Premium Bonds. On average, customers make new investments worth £400 million each month.

Developing services for customers

Offering customers the chance to invest in Premium Bonds by telephone is the latest in a number of developments that have increased customer access to NS&I's products and services. Earlier in the year, the Easy Access Savings Account was launched. It offers increased access via ATMs, as well as over the counter at the Post Office(tm) and direct with NS&I over the phone. NS&I has also expanded the number of products customers can invest in via the website and over the phone.

Gill Cattanach, marketing director for National Savings and Investments, said, "We are always looking into more convenient ways for customers to save.

"The new telephone service makes it easier than ever for customers to invest in Premium Bonds, offering them the chance of winning one of over 1 million tax-free prizes NS&I is giving away in September's draw."

How to buy Premium Bonds

* Using a debit card and calling NS&I on 0500 007 007

* Completing an application form available at any Post Office(tm) branch and investing over the counter or posting to NS&I

* Downloading an application form from the NS&I website at https://www.nsandi.com

* Requesting a form from NS&I over the phone at 0845 964 5000

1 million Premium Bond prizes

The prize fund rate is currently 2.60% per annum tax-free, equivalent to 3.25% p.a. gross for a basic rate tax payer and 4.33% p.a. gross for a higher rate tax payer.

From 1 September 2004, the prize fund rate will go up to 2.80% per annum tax free, and on 1 October it increases again to 3.00%, with odds fixed at 24,000 to 1. The change in the prize fund rate in September means the number of monthly Premium Bond prizes increases to more than 1 million for the first time ever.

Like all National Savings and Investments products, Premium Bonds offer investors 100% security, backed by HM Treasury, as well as the sense of fun that comes from winning tax-free prizes.

How Premium Bonds work

Premium Bonds go into a monthly draw and, if ERNIE, the Blackpool-based number cruncher, produces numbers that match a Premium Bond held by a customer, a prize, ranging from £50 up to the £1 million jackpot, is awarded.

In July 2004, just over 877,000 prizes worth £52.2 million were awarded. The overall value of prizes paid out each month is based on the prize fund rate and the number of Bonds in the draw. This means the more money invested in Premium Bonds, the higher the overall value of prizes awarded.

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