The Difference Between the British and Canadian Premium Bonds

Premium bonds, the most successful savings program in British history, has given ordinary people a chance to win a million pounds in a lottery drawing of the figures, which draws from the bonds. Other countries are beginning programs, premium bond, but there are clear differences between them. Forty plus years of British millionaires has accomplished with two people per month and gave a few million other cash prizes instead of interest. The great thing about the British system, premium bonds is that they can withdraw from the investment at any time without penalty or loss of money.

Based on this model off the Canadian government has introduced a similar program, which has a very distinct difference. Canada Premium Bond is a safe investment is a bond that has an interest or even interest. Compared to the British system, which offers not interested in the Canadian system offers a guaranteed rate of return, and offers higher interest rates than the Canadian savings bond, which is quite different investment opportunities. They can be redeemed once a year, where as a British bond contributions can be made at any time.

Both premium bonds are backed by governments, so you can be assured that your money is safe. Both countries use the money to finance government projects. Money rather than money from taxes so investments do indeed help to keep increases in taxes on this event and you save money in the long term. The British system relies more on giving the money in the form of random cash prizes, while the Canadian system offers investors a fixed interest rate.

Both premium bonds in both countries does not charge fees, but any kind of Minister of Finance in Canada may stop when its sales department chooses. British National Savings and Investments does not intend to discontinue the sale of bonds and actually bought a number of bonds is growing rapidly. The only negative aspect is that withdrawals from the lottery system is to flourish, because without growth, a chance to win prize money in the British system can increase greater than most investors do not want to occupy.

Canadian investor has the same promises as the Briton tries to save money. The money is guaranteed and the return is not guaranteed by the British premium bond plan. Both systems are bonds great addition to any investment portfolio, but both countries have to diversify the portfolio especially if the portfolio is a long-term plan for retirement savings. Are you British or Canadian citizen, both opportunities presented bond premium for the perfect opportunity outside the main stream of savings plans, which were the basis of most banking institutions. You can talk with a financial adviser to find out if either the British or Canadian bonds for the portfolio are premium.