Premium Bond
- noun
- /ˈpriːmiəm bɒnd/
- UK
:
bono premium
- He explained that buying Premium Bonds allows you to participate in a lottery while saving money.
Cash ISAS obviously could protect that for you, or Premium Bonds as well.
- Cash ISAS obviously could protect that for you, or Premium Bonds as well.
- And there are a lot of Premium Bonds out there, a huge amount.
- This would suggest Premium Bonds was a winner, excuse the pun, right?
Examples
-
And there are a lot of Premium Bonds out there, a huge amount.
-
This would suggest Premium Bonds was a winner, excuse the pun, right?
-
Many people invest in Premium Bonds for a chance to win cash prizes each month.
-
With Premium Bonds, you won't earn interest, but you have the opportunity to win significant rewards.
Synonyms
5
3.1
A government certificate you buy to save money and earn interest that you cannot sell
Surface Forms
Morphology
Premium + bond
Although the constituents 'premium' (suggesting something extra or higher-quality) and 'bond' (a debt/investment instrument) give a vague idea that this is a special type of investment, the specific meaning — a UK government product that pays no interest but enters holders into a prize lottery — cannot be derived from the words alone. This is a named financial product and requires cultural/lexical knowledge, so a B1 learner who only knows the parts would not predict its actual function.
Etymology
Premium Bond gets its name from the words premium and bond. It is a government 'bond' that does not pay 'interest' but gives a 'premium' — a chance to win money in a regular lottery, so the name reminds people they trade steady interest for prize chances.