Lottery bond

Lottery bond,

Definition of Lottery bond:

  1. 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.

  2. 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.

  3. 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?

  1. 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.
  2. In the United Kingdom, lottery bonds are called premium bonds.
  3. 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.
  4. 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