Definition of Lottery bond:
Similar to a ticket to a lottery where everyone has different numbers and there is a monthly drawing where, if an individuals numbers match those drawn, the bond will be bought back from him at a much higher price and he is considered to have won the lottery. National Savings is the only corporation allowed to sell lottery bonds.
A lottery bond is a government bond most famously issued by the United Kingdom's National Savings and Investments (NS&I). The bond gives the holder a chance to win a random monthly drawing for a tax-free cash prize. The bonds do not pay interest, but they do encourage saving.
However, like zero-coupon bonds, they are not protected against inflation. Otherwise, these are considered extremely safe because they are backed by the U.K. government.
How to use Lottery bond in a sentence?
- The bonds do not pay interest, but they do encourage saving and, in the United Kingdom, the bonds are backed by the U.K. government.
- In the United Kingdom, lottery bonds are called premium bonds.
- A lottery bond is a government bond that gives the holder a chance to win a random monthly drawing for a tax-free cash prize.
- Each bond is worth £1, and there is a £25 minimum investment and a £50,000 maximum investment.
Meaning of Lottery bond & Lottery bond Definition