Everything has some gloomy prospects, along with the positive ones. It is not possible to claim that there is nothing positive or negative about that. Our today’s blog is on positive & negative aspects of purchasing Prize bonds. You will get to know why you should buy a prize bond or what causes you should not. Let’s get straight to our topic.
Pros of investing in Prize bonds:
The word Pros means Advantages or profit. We are enlisting a few reasons proving it’s beneficial to invest your money in buying Prize bonds:
- Many financially unstable people remain in search of how they can lead a good & comfortable life. They strive hard to earn money but make the day-long effort; they reach a little money. Buying Prize bonds can be proven useful for such families. They can use the money in the following ways:
- They can use that money to educate their children, which they can’t afford before.
- They can start any business from that amount.
- They can manage the expenses of the marriage expenses of their children with this money.
- Not just the lower-class but the middle-class too can invest their money to purchase the prize bond. They can utilize the money (if they won) in the same ways as mentioned above.
- There is a significantly less chance of loss if we don’t win the prize bond because you can buy the lowest denominations like Rs 100, 200, 750 & 1,500.
Till when can we claim the prize money?
Till the period of six years, your prize bond is useful, or you have a chance to claim the money. If you have won the prize & have not declared the money for six years, the prize bond terminates. It is of no use then.
Cons of investing in Prize bonds:
The word cons mean disadvantages. We have discussed the advantages. Now let’s come to discuss some disadvantages or facts proving why you should not invest your money in buying a prize bond:
- There is no guarantee that every prize bond you buy will get nominated for lucky draws. Only a few people among the thousands of others get their name in the list of winners. So, rethink before buying prize bonds.
- You can face the loss of thousands of rupees if your prize bond can’t make its place in the list of winners. For instance, buying prize bonds of Rs 15,000, 40,000 & 40,000 premium & not being the lucky draw is quite heart wrenching for investors.
Investing your money in purchasing prize bonds can be useful & useless at the same time. There are many advantages to buying them, but there are a few disadvantages as well. So, finalize your decision after thinking correctly.