Where to buy premium bonds
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Buy Premium Bonds directly from any U.K. bank or financial institution. You can purchase them in increments of 100 pounds, with a maximum holding amount of any one individual of 30,000 pounds. Each 100-pound investment gives you 100 numbers that are entered into a monthly drawing, which means you have 100 chances to win.
Purchase your Premium Bonds from your nearest Post Office. This is where you can purchase all products and services from National Savings and Investments (NS&I), which conducts the bond program in the United Kingdom.
Visit the official website of the NS&I, where you can purchase Premium Bonds directly over the Internet via a secure form (see Resources below). This is quickly becoming the easiest and most popular way for participants to purchase Premium Bonds, and to keep
track of the winning ticket numbers in the monthly drawings.
Get Premium Bonds over the telephone, or by sending a check in the mail to the NS&I. The contact information is available on the NS&I website.
Keep track of the monthly drawings to see if you have won. 2 grand prizes of 1,000,000 pounds are awarded each month, with the rest of the prizes dependent upon how much was invested in any given month. Winnings are completely tax-free, too.
Cash in either the partial or whole amount of your bond investment at any time by downloading the form available online, or at any Post Office. You can then mail the form to the NS&I headquarters in Blackpool, and the amount will either be deposited into your bank account, or a check will be issued within 8 days.Source: ehow.com