Meaning & use
premium bond
Last updated
Meaning
nouncountableBritishfinance
In Britain, a government-backed savings product that pays no interest but enters your money in a regular prize draw.
Grammar: Usually plural: she holds Premium Bonds.
Patterns
- buy premium bonds
- win on the premium bonds
My grandmother gave me some premium bonds for my birthday.
He won 50 pounds on the premium bonds last month.
Premium bonds are popular because your original money is safe.
Word forms
| plural | premium bonds |
|---|
Common combinations
- win on the premium bonds
- She won on the premium bonds and bought a new laptop.
- buy premium bonds
- Many people buy premium bonds as a safe place to keep savings.
- premium bond draw
- The premium bond draw takes place every month.
- cash in premium bonds
- You can cash in premium bonds at any time.
- premium bond prize
- The top premium bond prize is one million pounds.
Synonyms and how they differ
- savings bond
- Savings bond is a general term for a government savings product, usually paying interest, unlike a premium bond.
- lottery ticket
- A lottery ticket risks your stake for a prize, whereas a premium bond keeps your money safe while giving you a chance of a prize.
- government bond
- A government bond lends money to the state for interest, whereas a premium bond pays prizes instead.
Word family
Commonly confused: premium bond or premium bonds with interest? premium bond or premium economy?
premium bond vs premium bonds with interest
Premium bonds do not pay interest, so they differ from ordinary savings bonds and savings accounts.
premium bond vs premium economy
Premium economy is an airline seat class, unrelated to savings.
Practice
What do you receive from a premium bond?
Choose one answer.
Premium bonds pay no interest; money is entered into a prize draw. Shares and tax discounts are not features of the product.
Make it your own
Write a sentence using “premium bond”, then check it and compare it with the examples above.