National Savings and Investments
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.
Premium Bonds
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™ 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
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.
July 2004
Source: NS&I
