You can play the lottery for as long as you like
and then get all the cash back!
Read and learn how a lotto should be organized, how you can play, and
perhaps ask your state to setup such a civilized game for you to invest
in. RP

UK Premium Bonds ( a no-risk lottery)

Someone recently me asked about UK "Lottery Bonds" and if they are still
available in the UK? Yes they are and they are known in the UK as Premium
Bonds.

The total Premium Bond fund paid in by investors is treated as a loan from
the Bond Holders to the Government.

In most ordinary bonds, the Power pays each holder interest each year.
With Premium Bonds, instead of each bond holder getting a few pence per
pound in interest, the money that would normally be paid in interest, is
divided into prizes that range from 50 to 1,000,000.

I suppose it could be called a form of "lottery" as there is a monthly draw,
but it is not widely regarded as a lottery here in the UK. PB's compare favourably with the UK National Lottery for the simple reason
that your "stake money" is never at risk and you can get your cash back in
full any time you want. And, there are no penalties for cashing in Premium
Bonds.

Individuals can hold a minimum of 100 bonds (100) or the maximum allowable
by Law - 20,000 bonds (20,000) or any number of one bonds (in units of 10 )
within those limits. Every Premium Bond issued has it's own unique ID which is made up of letters
and numbers.

After the mandatory one month ownership, each 1 bond has a chance of
winning a prize from a minimum 50 prize to a maximum one mill prize -
in a monthly select. Several thousand prizes at various prize levels
(including one x one mill prize) are won by bond owners each month.


The randomly drawn letters/numbers are revealed every month and bond owners
can check their unique bond ID against the choices drawn.

Statistically, holders of 10,000 x one bonds (10,000) should receive prizes
with a yield of more than 5% per annum. The added attraction is the good
chance of cash prizes at high prize levels that 10,000 bonds should
(statistically) produce over a one year period. All prizes are freebie of CGT (Capital Gains Tax).

The downside - only one choose per month and there is no guarantee of a prize.
Bond owners must be prepared to sacrifice capital evolution and interest in
order to gamble on the chance of winning one or more of the thousands of
monthly prizes.

Unless sufficient prizes are won by the investor (say over a 12 month
period) there would be no return either in terms of interest or capital
gain. Also, inflation (at whatever %) will inevitably take it's toll on the
original investment.

People who live outside the UK can buy UK Premium Bonds, but only directly
from:- National Savings, Blackpool, FY3 9YP, England. Contact them and they
will send you an application form. Premium Bond payments (investments) must
be made by cheque drawn on a UK Bank. US citizens should check their local
laws. If you want to and are legally allowed to buy UK Premium Bonds, then
you should set up an account with a UK wired bank for transfer of funds.