Can I buy premium bonds for my grandchildren? (2024)

FAQs

Can I buy premium bonds for my grandchildren? ›

Premium Bonds

Buying for someone else's child

You can apply online or by post. You can ask us to send you an electronic or paper gift card for you to pass on to the child. We'll also send you an acknowledgement of your investment. But only the nominated parent or guardian will be able to manage and cash in the Bonds.

But many investors will tell you that they aren't just another investment, they're a gift that keeps on giving. These bonds adjust for inflation every six months, making them an ideal investment that grows over time to provide a stable financial backing for a child or grandchild.

You can fill out an application at the Post Office and pay for bonds on the spot. You will make out the check to Post Office Ltd. Apply by mail. You can send in a check by mail along with your application for NS&I Premium Bonds.

Unlike most other assets, Premium Bonds cannot simply be passed on to beneficiaries of the estate, as they cannot be transferred into someone else's name.

Buying premium bonds for children living abroad

A child's parent or legal guardian can buy premium bonds for a child living abroad. It's important to note that the child must own a UK bank account or building society account for the prize money to be paid into if they win.

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.

Whether you're investing for your grandchild's college education or giving them a head start on retirement, grandparents have many options. Brokerage accounts, savings bonds, IRAs, 529 plans and Coverdell accounts are popular ways to invest for your grandchildren.

Thus, maternal grandmothers are predicted to invest the most, following maternal grandfathers and paternal grandmothers. Finally, paternal grandfathers are predicted to invest the least.

A youth account, also known as a children's savings account or kids' account, is one of the best savings accounts for a grandchild. Typically, these accounts are specifically tailored to meet the financial needs and goals of young individuals.

How often do premium bonds pay $1 million? ›

Each month, two Premium Bond holders win £1 million while six bondholders win £100,000. You can opt to have winnings paid straight into your bank account or to receive them by post in the form of a warrant (like a cheque).

Premium bonds are free of capital gains tax, stamp duty and income tax and do not count towards your personal savings allowance. They are not free of inheritance tax. Thank you. You must be signed in to post in this forum.

If the deceased's Premium Bonds stay in the draw, which they can for up to 12 months (instead of being repaid), who will receive any prizes won? Once we've been told of the customer's death, any prizes won will be paid by warrant (like a cheque) to the person entitled to the money after we've completed the claim.

The consistent winners are the 1.16 million people who have the maximum £50,000. They hold almost half of all premium bonds and, at current odds of 21,000:1, can expect a monthly stream of tax-free prizes: two a month and three almost every other month, 28 or 29 a year totaling £1,860.

There are a few things you need to know about Premium Bonds. Firstly, you can only buy them for someone else if the recipient is under the age of 16 – other family members will have to buy them for themselves. You can buy them for any child, not just for your own children or grandchildren.

Coverdell Education Savings Accounts

Like a 529 plan, a Coverdell education savings account (ESA) allows you to invest money, use it for qualifying college or K-12 expenses and pay no taxes on gains. You can open a Coverdell ESA at brokerages and other financial institutions for minor grandchildren.

The everyday option: a children's saving account

Some children's accounts have a distinctly higher interest rate than ordinary accounts. Opening a savings account for grandchildren at a local bank or building society is a good way to start teaching them the financial facts of life.

The minimum age required to open a Primary TreasuryDirect account is 18 years. A parent, natural guardian, or person providing chief support may establish accounts for minor children under the age of 18.

Accounts of the UGMA (Uniform Gifts to Minors Act) and UTMA (Uniform Transfer to Minors Act) varieties let you stockpile assets on your grandchild's behalf. Also called custodial accounts, they can hold cash, stocks and bonds that will transfer to your grandchild's possession at a specified age (usually 18 or 21).