There are syndicates for just about everything from racing horse ownership to lottery syndicates, and the appeal of the massive jackpot and multitude of prizes offered by the Premium Bonds means that groups of people are coming together in order to create their own Premium Bond syndicates or Premium Bond groups. These do work slightly differently when compared to lottery syndicates because the set up of the game is different and groups cannot hold Premium Bonds. A greater degree of trust is required between members and a Premium Bond agreement between syndicate members is certainly advisable.
Premium Bonds
Generally speaking, Premium Bonds are purchased by individuals and for their own use. The capital that is used to purchase the Bonds always remains and so the holder does not lose money on their investment. Where most bonds return a fixed amount as well as the initial capital, though, the Premium Bonds were established for those people that preferred the chance of winning big rather than earning a moderate amount.
The Monthly Draw
Every bond that is purchased has its own bond number and this number is entered into a monthly draw. The draw takes place on the first Monday of every month. A single ticket is picked and the holder wins the £1m jackpot. Over 1 million other prizes are also drawn at random by a random number generating computer.
Syndicate Details
Syndicates that wish to include Premium Bonds usually require that a number of bonds are bought every month and the winnings from the bond tickets are shared out between all syndicate members. It may be that, each month, a different member of the syndicate receives or buys the bonds and lets all other syndicate members know the numbers. Alternatively, a single person may purchase the bonds in their name and possibly take a larger portion of the winnings. The exact details of a Premium Bond syndicate will tend to differ with each syndicate due to the unusual and almost raffle like nature of the Premium Bond product.
The Premium Bond Syndicate Agreement
Regardless of how your syndicate is set up, it is advisable that every member signs a Premium Bond agreement that outlines how the syndicate will work, how much money should be paid, and who will hold the bonds. The Premium Bond agreement should also include details of how any winnings will be split and every member should sign and return a copy of the Premium Bond agreement.
