If you’re the parent of a child who has Premium Bonds, you may be wondering, ‘Can I cash in my child’s Premium Bonds?’
In this blog post, we will discuss the rules around Premium Bonds withdrawal, how to buy Premium Bonds as a gift and answer some common questions about them.
Premium bonds are a type of investment that offer a number of benefits, including the potential to earn tax-free interest.
If you want to learn more about what they offer and how they work, take a look at this guide on Premium Bonds.
The rules around cashing in your child’s Premium Bonds are straightforward – to withdraw Premium Bonds or close the account, you must be the person in charge of the child’s Premium Bonds.
To cash in your child’s Premium Bonds, you’ll need the holder’s number and bank account information and Bond record. You can either call the NS&I (National Savings and Investment) or fill in an online form on their website.
Anyone that’s 16 or older can buy Premium Bonds for a child.
If you’re buying Premium Bonds for kids that aren’t yours, you will need to nominate an adult to look after the Bonds until the child turns 16. The person responsible for the account (called the ‘responsible person’) must be a parent or guardian.
Once you buy the Premium Bonds for the child, NS&I will contact the responsible person to provide proof of identity and address. After the NS&I has confirmed their identity, the responsible person will be able to manage the child’s Bonds online via an online account.
How to buy Premium Bonds for a child?
Buying Premium Bonds for a child is a great way to teach them how to start saving early on. As a bonus, this type of saving product allows them the chance to win monthly prizes ranging from £25 to £1 million.
Buying for your own child
You can buy Premium Bonds from the NS&I for your child (or yourself) by calling the savings bank or fill out an online application on its website.
If you’re not the child’s parent or guardian, you’ll have to notify them before purchasing a Premium Bonds gift for their child since they’ll be responsible for the account until the child turns 16 and will have to provide details and certain documentation to the NS&I to open the account.
If they agree, you’ll need to provide the following information about the child:
The rules about cashing in Premium Bonds are simple, regardless of whether you’re trying to take out money from your account or your child’s. All you’ll need is the holder’s number, bank account information, and Bond record. However, you won’t be able to withdraw money from a child’s Premium Bonds if you’re not their parent or legal guardian and haven’t been named as the person in charge of that account.
Grandparents can buy Premium Bonds for grandchildren. If your grandchild is younger than 16, you will need to nominate a responsible person for their account. The responsible person must be a parent or guardian and will be in charge of the account until the child turns 16.
When a child turns 16, they will receive a letter from the NS&I, asking them to register and take over the bonds.
My name is Marija, and I'm a financial writer at DontDisappointMe. Although finance might not be everyone's cup of tea, my 10+ years of working in one of the biggest banks in my country, and my interest in extensive research on everything finance/investment-related, have made me somewhat of an expert in the field (if I do say so myself). No longer having the passion to work in a corporate setting, I decided that I couldn't let all of this knowledge go to waste so I started writing. And, here I am! Today I try to share my knowledge with my audience in the hopes of making this topic as simple and interesting as possible. In my leisure time, I like spending time with my family and travelling to new locations.