Definition of Premium Bond noun from the Oxford Advanced Learner's Dictionary

 

Premium Bond

 noun
noun
BrE
 
; NAmE
 
(also Premium Savings Bond
BrE
 
; NAmE
 
)
 
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(in Britain) a document with a number on it which can be bought from the government and which offers a chance of winning money as a prize every month. The top prize is £1 million. Unlike National Lottery tickets the Premium Bonds can be sold back to the government at any time for the original price. They were introduced in 1956 as a way of encouraging people to save money. No interest on the money is paid to individual savers except through the prize draw; the interest paid by the government goes into the prize fund. see also ERNIE