premium bond
Noun: A type of government-issued savings bond that does not pay regular interest or capital gains. Instead, each bond gives its holder a chance to win cash prizes in regular, tax-free lotteries. The original capital invested remains safe and can be redeemed at face value.
A "premium bond" is a specific financial product. It is used to describe this unique form of savings where the potential return comes from prize draws rather than guaranteed interest. - She invested her savings in premium bonds for a chance to win a million pounds. - Unlike a regular savings account, a premium bond does not generate annual interest.
As a direct object:
- My grandparents bought me a premium bond when I was born.
- You can check if your premium bond has won a prize online.
With quantifiers:
- He holds the maximum amount in premium bonds.
- I own a few premium bonds but have never won anything.
"to be invested in premium bonds": to have one's money placed in this type of bond.
- A significant portion of the nation's savings is invested in premium bonds.
"premium bond holder": a person who owns premium bonds. (Note: This is a compound noun listed separately as a variant).
- Every premium bond holder is automatically entered into the monthly draw.
- Premium Bond holder (n): A person who owns one or more premium bonds.
- Savings bond (n): A more general term for a government debt security sold to the public to fund government spending, which may or may not pay interest.
- Prize bond: A very close synonym, commonly used in other countries for a nearly identical financial product.
- Lottery bond: A descriptive synonym emphasizing the lottery aspect.
This term is primarily associated with specific government savings schemes, such as those offered by National Savings and Investments (NS&I) in the United Kingdom. The core concept is the substitution of fixed interest payments with a chance-based prize system, while guaranteeing the return of the initial investment.
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a government bond that bears no interest or capital gains but enters the holder into lotteries
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