NS&I opens up Premium Bond purchase for under 16s
27 August 2019
NS&I has changed its rules so that anyone aged 16 or over can now invest in Premium Bonds on behalf of children under the age of 16.
This will include aunts, uncles and family friends, as well as parents and grandparents.
NS&I said the change to Premium Bonds, first revealed in the October 2018 Budget, is aimed at inspiring a stronger savings culture.
Economic Secretary to the Treasury, John Glen, 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.
“[The new rules] 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.”
Ian Ackerley, NS&I chief executive, added that by opening up Premium Bonds to more people, NS&I hoped 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.”
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.
The minimum investment into Premium Bonds was reduced from £100 to £25 in February 2019.
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