Buying Premium Bonds for children is now easier
Anyone aged 16 or over can now invest in Premium Bonds on behalf of children under the age of 16, meaning that friends and family can now gift children bonds to get them in the savings habit.
Previously only parents or legal guardians, grandparents and great-grandparents could buy the bonds for children. The rule change was announced in the October 2018 Budget and comes into effect today. It is aimed at encouraging a stronger savings culture.
John Glen, the economic secretary to the Treasury, said: “Putting money aside for our children’s future is something we all want to do, and Premium Bonds have long been an excellent way to give them a head start.
“We are now making that even easier, allowing aunts, uncles and family friends to buy Premium Bonds for under-16s. Doing this will not only help families and friends support their loved ones, but also encourage a savings culture by giving young people something to build on when they themselves start saving for the future.”
Premium Bonds can be bought as gifts online at nsandi.com/gift or by post and the purchaser will need to nominate one of the child’s parents or guardians to look after the bonds until the child turns 16-years-old.
The nominated parent or guardian will then be sent the bond record, any prizes won and any payment for cashed-in bonds. If the customer has chosen to have prizes reinvested for a child then prizes will be paid to the child’s Premium Bonds account.
This latest improvement to Premium Bonds follows the reduction of the minimum investment to £25 in February this year. Since March, NS&I customers can use their voice, through Alexa, to see if they have won any prizes in the Premium Bonds monthly draw.
Ian Ackerley, NS&I chief executive, said: “Premium Bonds hold a special place for many savers, and we know, often, that Premium Bonds are bought for a child. We are delighted to give the opportunity for those other than parents or grandparents to give the gift of Premium Bonds, and allow those to pass on the tradition and the gift of savings to the children in their life.
“By opening up Premium Bonds to more people, we hope to encourage inter-generational saving, kick-starting young people’s savings habits and making NS&I an integral part of young people’s savings journey.”