premium bond

(redirected from Premium bonds)
Also found in: Dictionary, Thesaurus, Legal.

Premium bond

A bond that is selling for more than its par value.

Premium Bond

A bond with a price higher than its face value. A premium bond occurs when a particular bond's coupon rates exceed the interest rates prevailing at the time. For example, if a bond was issued with a 5% coupon and most other bonds are paying 2%, this bond has more value on both the primary and secondary markets. As a result, it is more expensive and is sold at a premium.

premium bond

A bond that sells at a price above its par value. An investor must be careful about purchasing a bond that is selling at a premium because of the possibility of a call by the bond's issuer for sinking fund requirements or for refunding. Except for convertible bonds, the size of a bond's premium usually can be expected to decline as the bond approaches maturity, at which time it will be paid off at par.

premium bond

a FINANCIAL SECURITY issued by the UK government as a means of raising money for the government and encouraging private SAVING. Premium bonds are issued in small denominations, but do not pay interest, nor can a capital gain be obtained on redemption, since they are issued and redeemed at their face value. Their appeal lies in the prospect of a ‘gambler's chance' of winning a substantial lump sum of money in a monthly prize lottery (numbers being drawn electronically by ‘ERNIE’).

premium bond

a FINANCIAL SECURITY issued by the UK government as a means of raising money for the government and encouraging private SAVING. Premium bonds are issued in small denominations but do not pay interest, nor can a capital gain be obtained on redemption since they are issued and redeemed at their face value. Their appeal lies in the prospect of a ‘gambler's chance’ of winning a substantial lump sum of money in a monthly prize lottery (numbers being drawn electronically by ‘ERNIE’).
References in periodicals archive ?
In my case, whenever a regular National Savings mail shot falls through the letter box, I check our bank current account to see if any spare cash is earning a derisory 0.10 per cent interest at Lloyds TSB and bung another pounds 200 off to the Premium Bonds HQ in Blackpool to get a centimetre or two nearer a pounds 1m monthly jackpot.
"Whether you have been lucky enough to win this month or not, Premium Bonds can help to create exciting adventures and opportunities for our customers, whether they're winning big or regularly tucking away pockets of savings.
These undelivered prizes are just part of a total pot of unclaimed Premium Bond winnings worth more than PS61.3million.
The first monthly Premium Bond draw using ERNIE 5 was in March 2019.
For those wondering a premium bond is government security that offers no interest or capital gain but is entered in regular draws for cash prizes.
Premium Bonds aren't "the one safe haven" any more.
Alderman Sir Cuthbert Ackroyd, the then Lord Mayor of London, bought the very first Premium Bond on November 1 1956.
It comes 12 months after the Premium Bonds limit was increased from PS30,000 to PS40,000, with a second PS1 million prize winner also being introduced from August 2014.
You may be wondering, given that premium bonds don't cost any more than par bonds, whether there is any benefit to these bonds over par, or "regular." After all, in my gasoline example, I did concede there were some advantages to premium over regular gasoline, and when given the chance to buy premium at no greater cost than regular, I did so in a heartbeat.
A MYSTERY man from Kirklees is PS1 million richer thanks to a Premium Bonds win.