How to Buy U.K. Government Bonds
U.K. government bonds are controlled by National Savings & Investments (NS&I), which represents Her Majesty's Treasury throughout the United Kingdom. While all U.K. government bonds must be paid by funds drawn by a U.K. financial institution, a brokerage firm that specializes in global securities should be able to complete your transaction.
- Difficulty:
- Moderately Easy
Instructions
Things You'll Need
- Bond broker specializing in global securities
- Funds that you can draw from a U.K. financial institution
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Buy U.K. government bonds by working with a bond broker that specializes in global securities. National Savings & Investments will sell bonds to individuals outside of the U.K., but you will need to fill out a special application and draw all of your funds from a U.K. bank. A broker that is familiar with NS&I will be able to complete most of the paperwork with you and walk you through the process.
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2
Check with a global securities broker to make sure it is legal for you to invest in U.K. government bonds, especially in Premium Bonds. Many countries, including the United States, may place restrictions on your ability to collect interest or dividends.
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3
Determine which kind of bonds you would like to buy from NS&I, based upon your financial needs and time frames. NS&I offers many bond programs, such as income bonds and guaranteed equity bonds. You will also find Premium Bonds, a very popular program in which an individual purchases bonds that do not pay interest, but allow the bearer to be entered into a lottery, where tax-free cash prizes are awarded based upon monthly drawings.
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Reinvest any winnings from the Premium Bond program so that you will increase your chances of winning again. Remember, however, that no individual can hold more than 30,000 pounds in Premium Bonds.
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Deal with NS&I directly by logging onto the website and creating an account (see Resources below). You may need to pre-qualify if you live outside of the U.K. The website, however, will walk you though the process of setting up an account and buying U.K. government bonds.
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Tips & Warnings
United States gaming laws prohibit receiving information through the U.S. Postal Service about lotteries abroad, such as Premium Bonds. You will not be able to receive any cash or prizes through the mail if you win, so you may have to set up a bank account in the U.K. for this reason.
