Premium Bond (Noun)
Meaning
A government bond that bears no interest or capital gains but enters the holder into lotteries.
Classification
Nouns denoting possession and transfer of possession.
Examples
- Investors in premium bonds do not receive interest payments or capital gains but are entered into a monthly lottery to win cash prizes.
- The UK's National Savings and Investments agency issues premium bonds to investors, who are then eligible to win tax-free prizes.
- She bought a premium bond every month, hoping to win the top prize one day and pay off her mortgage.
- The appeal of premium bonds lies in the possibility of winning a life-changing sum of money, rather than earning interest on an investment.
- After winning a smaller prize, he decided to invest more money in premium bonds, convinced that he was on a lucky streak.