Q: Please can you just examine this way of investment:
Name: National saving & investments (premnium bonds) it does not give interest but prizes.
All details should be found on this website: http://www.nsandi.com/products/pb/howitworks
Futhermore I email them to ask waht they do with the money once invested and they replied:
"Since 1st January 1981 the money raised through the sale of National Savings & Investments Premium Bonds and from our other products, has formed part of the Governments financing programme, and is paid into the National Loans Fund. The National Loans Fund is liable for both the repayment of capital and the interest (in the case of NS&I Premium Bonds the total value of prizes) paid each month. The Exchequer is authorised by Parliament to make use of the National Loans Fund, including any outstanding prize money, for such matters as the government may decide. In the past this has included health and education. However, what the money is spent on is a matter only for the government and not for National Savings & Investments. NS&I's aim is to benefit taxpayers by helping to minimize the cost of financing the national debt, a major part of government spending. The savings we make help free up resources for the government. Hoping this information is helpful."