Premium Bonds History

The idea of premium bonds were first came about in 1861. The purpose of these funds is to help the commoners to save and invest their money for the protection in the event of accident or death. It was formerly known as the Post Office Saving Bank. People started to buy more notes. The Chancellor needed money for the public projects and he received financial help through the funds. In this way, the premium bonds began to serve a dual purpose.

It was a secure investment for the people. They don’t need to be afraid the funds go bankrupt or depreciate in value. On the other hand, it served as a source of funding for the government when the taxes and other financial instruments are insufficient.