Savers can now invest in premium bonds with just £25, as National Savings & Investments (NS&I) has today announced the reduction of the minimum initial investment for premium bonds from £100 to £25.
This is the first time in 63 years since premium bonds launched that the minimum investment has been lowered, and this amount is the lowest minimum purchase since 1993. The change will allow adults over the age of 16 to purchase or a set up a standing order for a minimum of £25, or gift at least £25 to their children or grandchildren.
The change was announced in Chancellor Philip Hammond’s 2018 Budget, as part of a package of enhancements to premium bonds that will be introduced throughout the year, and is intended to encourage saving.
Along being able to start investing with £25, customers will be able to set up standing orders to purchase a minimum of £25 to save on a regular basis (the current minimum is £50). The maximum investment limit will remain at £50,000 for each customer. All money invested with NS&I is 100 per cent secure as the organisation is back by HM Treasury.
NS&I revealed that one in three adults people in the UK hold premium bonds, which gives savers the opportunity to win tax-free prizes each month, ranging from £25 to £1m.
Commenting, NS&I chief executive Ian Ackerley said: “I am delighted that people up and down the country can start a savings habit more easily by investing just £25 in Premium Bonds. Investing in Premium Bonds provides the opportunity to win tax-free prizes, whilst ensuring that your money is 100 per cent secure.
“Lowering the minimum investment on Premium Bonds is part of how we can support a stronger savings culture across the country and help those who want to be able to save little and often, and for those who want to give the gift of savings to their loved ones.”
Young Money CEO Michael Mercieca added: “Financial education prepares young people for the money-related choices they need to make on a daily basis. This positive development means Premium Bonds become a relevant choice for many more young people.”
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