The Queen’s speech set out the coalition government’s plans for its final year of power. Reforms to the pension system were a main focus and such changes are thought to give discretion to those who have saved for their retirement.
The Queen announced that there will be an extension to Premium Bond schemes.
Following their introduction in 1957, premium bonds have become a traditional, risk-averse vehicle for savings. This popular product has now been given a boost because on June 1 the maximum amount a customer can invest increased from £30,000 to £40,000.
There is now also an extra opportunity to win the £1 million jackpot as a second monthly draw will be introduced with effect from August, although the number of smaller prizes is significantly reduced as the overall prize fund has dropped to 1.3 per cent.
Remember that the main benefit of premium bonds is that you have the opportunity to win cash prizes which are tax-free. The investor has 100 per cent security because Premium Bonds are backed by HM Government.
You can always check to see if you have won a cash prize by checking the NS&I website.
For further information on investments, including bonds, unit trusts and ISAs, contact Brian Ollerton at our Haslingden office on 01706 213356.