Premium Bonds might be a unique gift for a child under the age of 16. Regardless of who purchased the Bonds, the parent or guardian specified on the application is responsible for them until the kid turns 16.
Until the child turns 16, we’ll email confirmation of any transactions performed, prizes earned, and payment for cashed-in Bonds to the selected parent or guardian.
Parents or legal guardians can submit an application online, over the phone, or by mail. If your child currently owns Premium Bonds and you want to purchase more online or over the phone, you must first register. While we set up your registration, this could take a few days.
You have the option of applying online or by mail. You may request that we send you an electronic or paper gift card to give to the youngster. We’ll also give you a confirmation of your purchase. The Bonds can only be managed and cashed in by the nominated parent or guardian.
- Please double-check that the parent/guardian is willing to take after the child’s investment and that you have their permission to give us their information.
- We’ll verify everyone on your application’s identity and address, and we may need to request documentation to prove it.
- Please inform the parent or guardian that we may contact them to request proof of identity documentation.
Can I purchase Premium Bonds on behalf of someone else?
Premium Bonds can be purchased by anyone who is 16 years old or older. Parents, legal guardians and (great) grandparents can invest on behalf of their child or grandchild aged under 16.
No interest is paid on Premium Bonds. Instead, your Bonds will be entered into a monthly prize draw to win tax-free gifts.
Premium Bonds – the prize draw
Every month, almost two million awards are distributed to lucky Bond holders whose numbers are determined at random.
For every £1 you invest, you will receive a unique Bond number. Every month, each number has a separate and equal chance of winning a prize.
On the National Savings and Investment (NS&I) website, you may learn more, apply online, and check if you’ve won if you have Premium Bonds.
What is the procedure for a grandparent purchasing Premium Bonds?
Grandparents can purchase premium bonds for their grandkids just as they can for themselves.
They can purchase them online, over the phone, or by mail, but they must first register with NS&I.
Once grandparents have created an account, they will be responsible for it until their grandchild reaches the age of 16.
What happens to Premium Bonds when the owner dies?
Premium Bonds cannot be inherited or transferred to another person’s name in the same way as funds from bank accounts and savings accounts can.
Instead, if you’re administering someone’s estate and need to deal with their Premium Bonds, you have two options. The first option is to sell them while they are still in the probate procedure. If you do this, the proceeds from the sale will become part of the estate and will be passed down to the beneficiaries after the estate administration is finished. This is the quickest way for Premium Bond beneficiaries to inherit money.
The alternative is to leave them alone for the time being. NS&I can keep Premium Bonds for up to 12 months following a person’s death. They are still eligible for monetary rewards throughout this time. The executor of the estate or a nominated beneficiary can contact NS&I after 12 months to claim the prizes and cash out the Bonds. This will postpone the inheritance of wealth, but it may result in greater money in the end. As the executor, you should consult with the beneficiaries who will receive the estate’s funds to determine which option is best for their individual circumstances.
Can I get Premium Bonds for my wife?
To begin, let me state that Premium Bonds are a safe investment. They are government-backed and come from NS&I (previously National Savings & Investments). However, you should keep in mind that, after inflation is factored in, they will lose purchasing power from year to year.
There are a few things you should be aware of when it comes to Premium Bonds. To begin with, you can only purchase them for someone else if the receiver is under the age of 16; other family members must purchase them for themselves. They are available for purchase for any child, not only your own children or grandchildren. Premium Bonds for kids can be purchased online or by mail.
Adults can cash in their Premium Bonds whenever they wish, while bonds owned by children under the age of 16 can only be retrieved by the parent or guardian who has been designated.
Is it possible to purchase Premium Bonds in my child’s name?
Premium Bonds for children under the age of 16 can be purchased by anyone. It’s acceptable if the youngster already has some Premium Bonds; they can hold up to £50,000 worth.
If you are not the child’s parent or guardian, you must notify them before purchasing Premium Bonds, since we will contact them directly for things like giving proof of identity and address.
- Please double-check that the parent/guardian is willing to take after the child’s investment and that you have their permission to give us their information.
- We’ll verify everyone on your application’s identity and address, and we may need to request documentation to prove it.
- Please inform the parent/guardian that we may contact them to request proof of identity documentation.
We’ve put up a quick guide on how to top up a child’s funds, whether you’re a parent, grandparent, or family friend:
Is it possible to purchase bonds for my niece?
Your niece will need to open a Treasury Direct account if she doesn’t already have one in order to get the bond. (If she is under the age of 18, her parents must open a minor-linked TreasuryDirect account on her behalf.) Enter your niece’s TreasuryDirect account number on the Delivery Request page, and the savings bond will be sent to her. She won’t have to do anything after her account is set up to receive the bond. As soon as you purchase the bond, it begins to earn interest. It can be transferred one business day after purchase, but you are not required to do so right away. You can print a gift card from the site if you want to give her the gift in person or by mail.
For more information about opening an account and transferring a bond, see the TreasuryDirect FAQs.
TreasuryDirect allows you to purchase both series EE and series I bonds as gifts. These bonds are secure investments, but they are currently paying relatively little interest. EE bonds pay 0.6 percent interest each year, which is guaranteed for the life of the bond. EE bonds are guaranteed to double in value if kept for 20 years, independent of interest rate, as an inducement to long-term bondholders. I bonds pay a variable rate of 2.2 percent, which is increased every six months dependent on the rate of inflation (measured by changes in the consumer price index for all urban consumers, or CPI-U). For further information on both types of savings bonds and how interest is credited, visit the TreasuryDirect Web site at http://www.treasurydirect.gov/tdhome.htm.
Who owns the funds?
First, you must decide whether to keep the cash in your name or in the name of your grandchild.
Your savings could jeopardize your grandchild’s financial aid application. This is especially true if the funds are held in the name of your grandchild.
The Free Application for Federal Student Aid (FAFSA) uses a formula to determine how much financial aid a student should receive.
When calculating a student’s ability to pay for college, this system strongly penalizes them for money stored in their name.
Access to the funds
Next, if you put the money in your grandchild’s name, they may be able to access it before you wish them to.
They may also use the money in ways other than those for which you intended.
A child can normally access any funds in their name until they become 18, or 21, depending on the state. That also implies they’re free to do anything they want with them.
If you keep the money in your name and simply identify your grandchild as a beneficiary, you may maintain control over how it is spent.
You won’t have to deal with an 18-year-old wasting thousands of dollars customizing an old car this way.
Is it possible for me to transfer premium bonds to my daughter?
You’ll have to cash in the bonds you want to give her and send her the money so she may put them to use. “If your niece is under the age of 16, she won’t be able to buy them for herself, but you can give the money to a parent, guardian, or grandmother, who will be able to buy them for her.”
Is it possible for me to transfer premium bonds to my husband?
When a Premium Bond holder passes away, the estate executor has the option of cashing the investment or keeping it in place.
If the Premium Bonds are not cashed within the first 12 months, they are entered into the prize draw as usual. A nominated individual or the executor of the estate can claim any awards received. The bonds cannot be transferred to another individual therefore will remain in the name of the dead.
The bondholder’s death should be reported to National Savings & Investments as soon as feasible.
If the bonds are chosen off the ballot, the appropriate person will be notified.
Can I purchase Premium Bonds on behalf of someone over the age of 18?
Anyone above the age of 16 can now purchase Premium Bonds for someone else’s child under the age of 16, albeit not everyone can do so over the phone.
Only a child’s parents, guardians, or grandparents could formerly purchase Premium Bonds on their behalf.
According to the NS&I Premium Bonds booklet, anyone over the age of 16 can purchase Premium Bonds on behalf of another adult if they are acting as their power of attorney.