UK Premium Bonds Now Just £25

Good news. The UK Premium Bonds have recently lowered the minimum amount needed to invest in some bonds from £100 to £25. This makes a lot of sense. Having to spend a minimum of £100 to hold some bonds made most people hesitate a bit.  But £25 is much more affordable. If you work it makes it much more doable to be able to buy just £25 a week, or even £25 per month out of your wage packet. It will soon add up to a decent amount of Premium Bonds.

Some people would have you believe that the bonds are a silly investment because the odds of being one of the lucky few that win a substantial prize every month is in the Billions, yes Billions. And they rightfully crunch all the numbers and start talking percentages and say "You'd earn more in interest by just leaving the money in the bank". In some ways they are correct. But personally, I like to mix things up a bit and put money in a few different places. And so should you.

Look at it this way. If you play the lottery and lose, like most people do these days since they added more numbers, you've lost your money. But if you have some premium bonds and they don't come up, you don't lose your money. It's still sitting there waiting to be entered into next months draw.

OK, you may lose a small percentage if GBP (British Pound) falls in value, but not much at all over a few years going on currency trends. And remember, no matter how big the odds may seem, two people every month win a 1 million pound prize. And several more win £100,000, £50,000, £25,000, £10,000, etc. That's guaranteed. Unlike the UK "National" (Canadian owned) Lottery where it keeps on rolling over.

So to all those people who say "nah, can't win on the bonds, impossible, the odds are too great". Go and say that to one of last months million pound winners, and they'll no doubt say - mate, I won it last month, so its very possible. And don't underestimate a £25 bond either. I check the bond winner results regularly and I always see a few £25 bonds that have landed a win of £5,000+.

But this was before the limit was lowered and these £25 bonds were prize winnings that bond holders opted not to withdraw but to have invested back into more bonds. Exactly the same thing though really. My advice: Buy some, it's worth the risk. What risk? You don't really lose anything! And you can take your money back whenever you want. -Interwire.