Definition of Premium Bond in English:

Premium Bond

Line breaks: Pre|mium Bond
Pronunciation: /ˈpriːmiəmbɒnd
 
/
(also Premium Savings Bond)

noun

(In the UK) a government security that offers no interest or capital gain but is entered in regular draws for cash prizes.
More example sentences
  • Rather than paying interest, Premium Bonds offer savers the chance to win tax-free prizes ranging from £50 to £1m each month.
  • In return for loaning the Government money, you are rewarded by receiving your interest tax-free (and in the case of Premium Bonds, by winning prizes).
  • The current prize fund rate for Premium Bonds is 2.25%.

Get more from Oxford Dictionaries

Subscribe to remove adverts and access premium resources

Word of the day impudicity
Pronunciation: ˌɪmpjʊˈdɪsɪti
noun
lack of modesty