We all understand that enjoying the lottery could be a type of Gambling. An equivalent should be prize over Premium Bonds, except there’s no part of gambling concerned. Bonds ought to be purchased in 100 rupee blocks, it may well be worthy exploitation of your savings. So, bonds may be bought each month or even quarterly. The bonds might make you rich person, Prize Bond Result are drawn monthly or bi-monthly.
Back in last year I invested Rupee 25000 in Prize Bonds. From that time, I could not win even a single rupee and still have my Rupee 25000 value of bonds. Basically, the monthly interest earned on each Premium Bond is lumped along to form the prize fund. To be eligible to buy Premium Bonds, you want to be a minimum of sixteen years old man or woman. There are plenty of denomination bonds available from 100 rupees to 25000 rupees.
We refer to the National Savings Institute web site, there statistics shows that Rupee 26 Billion value of bonds issued during the last 12 months. The interest rate used to measure the return in the form of draw result was around 4 %.
With Premium Bonds, you keep your capital of Rupee1 per bond and it will be invested in multiple times by National Institute. With Lotto, every Rupee1 spent on a price tag is lost and therefore the smallest prizes cannot compensate the loss incurred over the lottery gambling.
Advantages of premium bonds are chances of winning a big prize, Capital is secure, and prize money is not taxable. Whereas disadvantages are that your bond number will come in balloting is rare & it also offers very poor/ low interest rates. Now, it’s your decision in which direction you wish to travel. Either purchase bonds or opt for different investment choices that would provide you a lot of returns however you may be vulnerable to higher risk.