{"id":1533,"date":"2022-04-01T13:03:53","date_gmt":"2022-04-01T13:03:53","guid":{"rendered":"https:\/\/www.dayoutwiththekids.co.uk/hub\/?p=1533"},"modified":"2023-02-06T14:30:10","modified_gmt":"2023-02-06T14:30:10","slug":"premium-bonds-for-children","status":"publish","type":"post","link":"https:\/\/www.dayoutwiththekids.co.uk/hub\/parenting\/premium-bonds-for-children","title":{"rendered":"Premium Bonds for Children"},"content":{"rendered":"
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Premium Bonds for children, where do we start, eh? Once you understand the basics of this government-run savings account, you will quickly work out if it’s a place you wish to invest your child’s future funds. Premium bonds<\/strong> were first introduced in 1956 and are now owned by around 21 million people in the UK! But, like all savings accounts and methods, it has its pros and cons.<\/span>\u00a0<\/span><\/p>\n

So in order to break down this type of banking, and to help work out if it’s the right fit for you, we have listed some FAQs for premium bonds for children<\/strong> that will help answer your money worries and queries.<\/span>[\/vc_column_text][vc_empty_space height=”5px”]\t

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Premium Bonds for Children<\/h2>\n[\/vc_column_text][vc_empty_space height=”25px”][vc_column_text]\n

What is a Premium Bond?<\/h3>\n[\/vc_column_text][vc_separator align=”align_left” border_width=”2″][vc_column_text]Premium Bonds are an investment<\/strong> product issued by National Savings & Investments (NS&I). They are a savings account you can put money into (and take out when you want), where the interest paid is decided by a monthly prize draw. You can win between \u00a325 and the jackpot prize of \u00a31 million tax-free. <\/span>[\/vc_column_text][vc_empty_space height=”40px”][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space height=”25px”][vc_column_text]\n

Why Are Premium Bonds Good for Children?<\/h3>\n[\/vc_column_text][vc_separator align=”align_left” border_width=”2″][vc_column_text]An NS&I Premium Bond is a great method of saving money for your child and is a gift that will (fingers crossed) keep on giving. Any family member over 16 can buy premium bonds for a child (0-15). That\u2019s right; aunts, uncles and even family friends can get involved to set up these funds! <\/span>[\/vc_column_text][vc_empty_space height=”40px”][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space height=”25px”][vc_column_text]\n

How Do NS&I Premium Bonds Work?<\/h3>\n[\/vc_column_text][vc_separator align=”align_left” border_width=”2″][vc_column_text]When saving or investing with NS&I, you\u2019re lending to the government but don’t worry, your money is totally secure. The government guarantees to buy back your bonds at the price you purchased them.<\/span><\/p>\n

Different NS&I products might pay interest, stock market or inflation-linked returns (income) or, in the case of Premium Bonds, tax-free prizes\/a prize fund.<\/span>[\/vc_column_text][vc_empty_space height=”5px”]\t

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Can You Lose Money in Premium Bonds?<\/h3>\n[\/vc_column_text][vc_separator align=”align_left” border_width=”2″][vc_column_text]You cannot lose your money<\/strong> in premium bonds as the NS&I is authorised and regulated by the Treasury, rather than a bank. As mentioned before, the government will pay you back the same amount of money you paid for\/into the bond, therefore your money is 100% protected.<\/span>[\/vc_column_text][vc_empty_space height=”40px”][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space height=”25px”][vc_column_text]\n

What Can You Win From the Premium Bonds Prize Draw?<\/h3>\n[\/vc_column_text][vc_separator align=”align_left” border_width=”2″][vc_column_text]You get a unique bond number for every to buy \u00a31 invested. So if you save \u00a3100, you will get 100 bond numbers to enter into the prize draw. The idea is that the more bonds you buy the more chances you have to win! See a list of prizes and dates this year on the<\/span> Money Expert website<\/span><\/a>. You must not go over your \u00a350,000 limit.<\/span>[\/vc_column_text][vc_empty_space height=”40px”][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space height=”25px”][vc_column_text]\n

When Will My Child Receive Their Premium Bond?<\/h3>\n[\/vc_column_text][vc_separator align=”align_left” border_width=”2″][vc_column_text]Your child will receive their premium bond on their 16th birthday. Until then, the premium bond will be in the safe hands of mom & dad! Or you, nan, grandad, aunty, uncle…<\/span>[\/vc_column_text][vc_empty_space height=”5px”]\t
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How Many Premium Bonds Can You Buy for a Child?<\/h3>\n[\/vc_column_text][vc_separator align=”align_left” border_width=”2″][vc_column_text]You can have more than one<\/strong> guardian in charge of a child’s premium bond account but the child can only have up to \u00a350,000 of premium bonds in total. If you invest over \u00a350,000 in bonds in their name, will be cashed in and refunded \u2014 minus any prize money. If the prize money won is worth more than the extra bonds held, NS&I will ask for the cash back.\u00a0<\/span>[\/vc_column_text][vc_empty_space height=”40px”][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space height=”25px”][vc_column_text]\n

What is the Minimum Investment I Can Deposit for a Premium Bond?<\/h3>\n[\/vc_column_text][vc_separator align=”align_left” border_width=”2″][vc_column_text]The minimum purchase amount for bonds is \u00a325.00 for one-off purchases and monthly standing orders.<\/span><\/p>\n

Whereas, the maximum amount you can hold in your bonds is \u00a350,000!<\/span>[\/vc_column_text][vc_empty_space height=”40px”][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space height=”25px”][vc_column_text]\n

Do I Deposit My Premium Bond Funds into my Building Society?<\/h3>\n[\/vc_column_text][vc_separator align=”align_left” border_width=”2″][vc_column_text]NS&I bonds are a government-backed<\/strong> form of a savings account, so they are not a building society or affiliated with one. If you want to withdraw your money you will be selling some of your bonds. You can cash in your Premium Bonds at any time without penalty. If you\u2019re registered with an online account, you can do it straight away.<\/span>[\/vc_column_text][vc_empty_space height=”5px”]\t
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Are Premium Bonds Worth It?<\/h3>\n[\/vc_column_text][vc_separator align=”align_left” border_width=”2″][vc_column_text]Premium bonds offer cash prizes which is all great stuff however, the chance of winning the top prize is very very slim. The drawback to having premium bonds is that you won\u2019t earn regular income on your bonds. <\/span><\/p>\n

Most people who buy premium bonds will earn only a small amount as a percentage of the money they contribute.\u00a0<\/span>[\/vc_column_text][vc_empty_space height=”40px”][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space height=”25px”][vc_column_text]\n

How Do I Invest My Premium Bonds and Set Up An Account?<\/h3>\n[\/vc_column_text][vc_separator align=”align_left” border_width=”2″][vc_column_text]You’ll need to complete an application form and send it to NS&I first. This is important as they need to witness your signature<\/strong> as proof of identity in order to set up an account. <\/span><\/p>\n

O<\/span>nce they have this information & proof, you’ll be able to manage your accounts online (except for your Investment Account, which can only be managed by post). You can download an online form<\/span> here<\/span><\/a>.<\/span>[\/vc_column_text][vc_empty_space height=”40px”][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space height=”25px”][vc_column_text]\n

How Do I Cash in My Bonds?<\/h3>\n[\/vc_column_text][vc_separator align=”align_left” border_width=”2″][vc_column_text]You can cash in your Premium Bonds at any time without penalty. If you\u2019re registered with an online account, you can do it straightaway. Use this form from the official NS&I website<\/span> here<\/span><\/a>.\u00a0<\/span>[\/vc_column_text][vc_empty_space height=”40px”][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space height=”25px”][vc_column_text]\n

How Long Does it Take to Cash in Premium Bonds?<\/h3>\n[\/vc_column_text][vc_separator align=”align_left” border_width=”2″][vc_column_text]According to NS&I, it takes up to three banking days<\/strong> for the money to reach your account, unless you have elected to cash in after the next draw.<\/span>[\/vc_column_text][vc_empty_space height=”40px”][\/vc_column][\/vc_row][vc_row][vc_column]\t
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\n\t\t\t\"family\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t[vc_empty_space height=”40px”][vc_column_text]We hope your FAQs on children\u2019s bonds have been answered! If you are looking for more information please see the following websites…<\/b><\/p>\n

NS&I<\/span><\/a><\/p>\n

The Money Helper\u00a0<\/span><\/a><\/p>\n

Money Saving Expert<\/span><\/a>[\/vc_column_text][vc_empty_space height=”40px”][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]\n

Now that the basics for premium bonds have been covered, and you have more of an idea of how they work, what are your thoughts? Do they suit your and your family? If you are looking for more family finance info please check out our latest money & finance blogs<\/a>…<\/span><\/p>\n

Whether it’s the<\/span> best savings accounts for students<\/span><\/a> or even learning about the best savings accounts for kids<\/a><\/span>, we’ve got lots of great explanations and advice to help you.<\/span>[\/vc_column_text][vc_empty_space height=”25px”][vc_column_text]Need more advice? Head to our main<\/span> Parenting hub page<\/span><\/a>! We’ve got lots of great parenting advice from<\/span> Pregnancy<\/span><\/a>, \u00a0Food & Eating<\/span><\/a> and even<\/span> Baby Name Inspo<\/span><\/a>!<\/span><\/p>\n

If you are looking for fun activities and tips & to try with the kids, feel free to check out our <\/span>Tips & Hacks<\/span><\/a> page! Whether you need a shortcut to the best offers in our<\/span> membership blog<\/span><\/a>,<\/span> School Holiday info<\/span><\/a>, the<\/span> Best Online Games for Kids<\/span><\/a> or need medical advice for<\/span> ADHD in Children<\/span><\/a>. We have a broad range of advice for you to pick from!<\/span>[\/vc_column_text][\/vc_column][\/vc_row]\n<\/div>","protected":false},"excerpt":{"rendered":"

[vc_row][vc_column][vc_column_text] Premium Bonds for children, where do we start, eh? Once you understand the basics of this government-run savings account, you will quickly work out if it’s a place you wish to invest your child’s future funds. Premium bonds were first introduced in 1956 and are now owned by around 21 million people in the…<\/p>\n","protected":false},"author":29,"featured_media":1549,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[435,3],"tags":[],"thb-sponsors":[],"class_list":["post-1533","post","type-post","status-publish","format-standard","has-post-thumbnail","category-money-and-finance","category-parenting"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.dayoutwiththekids.co.uk/hub\/wp-json\/wp\/v2\/posts\/1533","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.dayoutwiththekids.co.uk/hub\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dayoutwiththekids.co.uk/hub\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dayoutwiththekids.co.uk/hub\/wp-json\/wp\/v2\/users\/29"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dayoutwiththekids.co.uk/hub\/wp-json\/wp\/v2\/comments?post=1533"}],"version-history":[{"count":0,"href":"https:\/\/www.dayoutwiththekids.co.uk/hub\/wp-json\/wp\/v2\/posts\/1533\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.dayoutwiththekids.co.uk/hub\/wp-json\/wp\/v2\/media\/1549"}],"wp:attachment":[{"href":"https:\/\/www.dayoutwiththekids.co.uk/hub\/wp-json\/wp\/v2\/media?parent=1533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dayoutwiththekids.co.uk/hub\/wp-json\/wp\/v2\/categories?post=1533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dayoutwiththekids.co.uk/hub\/wp-json\/wp\/v2\/tags?post=1533"},{"taxonomy":"thb-sponsors","embeddable":true,"href":"https:\/\/www.dayoutwiththekids.co.uk/hub\/wp-json\/wp\/v2\/thb-sponsors?post=1533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}