Definitions for "Premium Bonds"
Keywords:  prize, lottery, draw, winnings, bond
Purchased in units of £10 value with minimum purchase of £100, maximum £20,000. The bond numbers are entered in a monthly draw for tax-free cash prizes.
Bonds selling above face value because their interest payments are higher than prevailing interest rates.
A national savings scheme backed by HM Treasury similar to a lottery. You buy bonds which participate in regular draws until you cash your bonds. Any winnings are tax free and should not be entered on your Tax Return.