Definition, Meaning & Synonyms

premium-bonds

Noun

/ˈpriː.mi.əm bɒndz/

Definition

A type of investment bond that gives holders the chance to win tax-free prizes instead of earning interest.

Examples

Many people invest in premium bonds to try their luck at winning large sums of money.
Unlike regular savings accounts, premium bonds do not pay interest.
She decided to buy premium bonds as a safer way to save her money.

Meaning

Premium bonds are a savings product offered by the government where your money is entered into a lottery for prizes rather than earning traditional interest.