Can I buy Premium Bonds as Christmas presents for my family? (2024)

FAQs

Can I buy Premium Bonds as Christmas presents for my family? ›

Premium Bonds make a great gift for any occasion, and can also help kick start a healthy savings habit.

But only the nominated parent or guardian will be able to manage and cash in the Bonds. Before you apply for someone else's child: Remember, although you can buy Premium Bonds for someone else's child as a gift, you won't be able to look after the investment on their behalf or have the Bonds to be repaid to you.

The NS&I Premium Bonds brochure also states that a person who is at least 16-years-old can buy Premium Bonds for another adult if they are acting as their power of attorney. It's not possible to hold Premium Bonds jointly or in trust.

Whether you purchase an I bond for yourself or another person, the cap per person, per year is $10,000 in digitally purchased bonds. But this cap is per recipient. That means buying $10,000 worth of I bonds for yourself and an additional $10,000 in I bonds in another individual's name is possible.

This can be done on the NS&I website here. When it comes to the number of premium bonds that investors can buy, the answer is 50,000. Gifting premium bonds is entirely possible and makes for the perfect gift. If you're buying premium bonds for this purpose, it can be done online or by post.

You can buy bonds from an online broker — learn how to open a brokerage account to get started. Through this approach, you'll be buying bonds from other investors looking to sell.

We currently sell 2 types of savings bond: Series EE and Series I. You can buy them for yourself, your child, or as a gift for someone else. This page focuses on buying for yourself or a child whose account is linked to yours.

Furthermore, average winnings are around 1% or even less, which can still see your cash being beaten by inflation. The same research found that holding £50,000, the maximum amount of bonds, would give a 0.9% return with average luck. So the average return on 50k of premium bonds is £450 per year.

Step 1: Max out your $10,000 per person calendar year limit conventionally. You can buy $10,000 yourself and your spouse can buy $10,000 through their Treasury Direct login. Step 2: You could buy $10,000 or more in gift I Bonds in May that you could deliver to your spouse in future years.

What is the best bond for a gift? ›

There are two types of Treasury Bonds you can give as gifts: EE and I savings bonds. EE bonds are better if the recipient will cash them after 20 years; savings are better for less than 20 years. The purchasing and transferring process all happens through www.treasurydirect.gov.

They are still taxable. The interest income of the savings bond will be taxed to the bond's owner—i.e., the recipient of the gift—when the bond matures and is redeemed for cash (or the owner will be taxed each year if they elect to report the interest income annually).

‍A long-term gift for a child: Savings bonds can help magnify your financial gift by growing over time. They are a practical monetary gift that can help set a child up for a brighter financial future. ‍No commissions or fees: Savings bonds are purchased from TreasuryDirect rather than through a stockbroker.

The limit is per person — so if you're married, each spouse is allowed to purchase $10,000 in I bonds (plus the paper bonds if they have a tax return).

You can buy I bonds at any time. From May 2023 to October 2023, I bonds are paying 4.3%. Remember, that rate will change semiannually based on inflation.

For example, the interest from certain municipal bonds is often exempt from federal income tax and sometimes from state and local taxes. Additionally, the gift itself may qualify for the annual gift tax exclusion, potentially reducing your taxable estate.

Step 1: Max out your $10,000 per person calendar year limit conventionally. You can buy $10,000 yourself and your spouse can buy $10,000 through their Treasury Direct login. Step 2: You could buy $10,000 or more in gift I Bonds in May that you could deliver to your spouse in future years.

You can only cash bonds that you own or co-own unless you have legal evidence or other documentation that we accept to show you are entitled to cash the bond.

All the money you put into Premium Bonds is secure. There's a very small chance you could earn a very high tax-free return. You won't earn regular income on your bonds. Most people who buy Premium Bonds will earn only a small amount as a percentage of the money they contribute.