A premium bond is a type of investment offered by certain government institutions, where instead of earning regular interest, bondholders are entered into a prize draw for a chance to win tax-free prizes. In the United Kingdom, for example, Premium Bonds are issued by the government through National Savings and Investments (NS&I). People who buy these bonds do not receive interest payments, but each bond has a chance to win prizes, ranging from small amounts to large jackpots. The main appeal is the potential for winning prizes, though the money invested is fully refundable at any time without losing its value.

Definizione e significato di "premium bond"in inglese

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