Premium bond help.

lilac_lady

A gift is a gift and it's up to your MIL to decide what gift she gives. I think a smile and a thank you from you would be the best action you could take.

Primrose

As an afterthought, considering that Premium Bonds come with a minimum purchase price of £100, I think that's a pretty generous gift for a nine year old., (or kids of any age in these tight financial times). And if she knows her premium bond holder's number, when she is internet literate, she can have the monthly excitement (or disappointment) of going onto the NS&I website to check whether she has won a prize, even if you don't want to encourage her in "gambling".

alm721

SouthCoast wrote: »

I am a great fan of Grandparents buying Premium Bonds. It is easy, has no costs, and any winnings are tax free.

I agree but grandparents putting money in a savings account is easy, has no costs and the money does not depreciate over time as tax free interest is earn't. Doesn't that make more financial sense?

Lokolo

alm721 wrote: »

I agree but grandparents putting money in a savings account is easy, has no costs and the money does not depreciate over time as tax free interest is earn't. Doesn't that make more financial sense?

Yes but thats grandparents for you.

alm721

Don't get me wrong, I think its very generous of her to do it. I just think there are better ways of doing it which would be more likely to leave the kids with the money that she wants to give them when they are older. Especally the babies who will get them over a longer time (iyswim) I was bought a premium bond when I was little. Its was the minimum amount you could buy (like the £100 is now). Its now worth £5 (well has always been worth that but whats £5 these days in comparison to 20 years ago). I just think they are a really rubbish way to save money for children in the long term and still have issues with them as I do feel its a bit like introducing them to gambling!
Many thanks for the replies though It has made me see things a bit more from her point of view and I certainly won't be arguing with her as I said I think its generous of her to do it and its her money to do what she wants with, I think I'll just stick to telling the kids that they're just a bit of fun and not a sensible way to save money and she can deal with explaining why they can't have the money to put in their accounts.

alm721

Lokolo wrote: »

Yes but thats grandparents for you.

That is true!

lpgm

alm721 wrote: »

Now the problem is none of the children are especailly keen and the grandchildren far less so. Her intention is that its 'saving' for their future and they might win a fortune!

You could try this argument... if one of the kids did win the million - or even something smaller come to think of it - none of the others is likely to. Is your mother-in-law going to get the kids to sign an agreement that they have to share their winnings?

Seriously, wouldn't it cause some friction?

seven-day-weekend

I think your kids should put their faces straight and be grateful that she is giving them such a kind and generous gift.

Just mho.

alm721

lpgm wrote: »

You could try this argument... if one of the kids did win the million - or even something smaller come to think of it - none of the others is likely to. Is your mother-in-law going to get the kids to sign an agreement that they have to share their winnings?

Seriously, wouldn't it cause some friction?

Yep this is also a worry. Although unlikely, should it happen it could be very difficult to resolve.

alm721

seven-day-weekend wrote: »

I think your kids should put their faces straight and be grateful that she is giving them such a kind and generous gift.

Just mho.

I don't think either of my kids don't have their ''faces straight'' about being given premium bonds, particulaly not the baby! I thought these forums were about money saving etc and given that Martin has written articles on how premium bonds are pretty rubbish (unless you are a higher rate tax payer whos used up all of their isa allowance) which I'm pretty sure neither of my kids have, I just wanted others opinions. (which you gave thank-you) However, I feel the comments of ''your kids should be grateful''etc are kind of missing the point.

It is generous of her to want to do this but is not something that we as parents particuly agree with. I do feel its a bit like gambling which I don't like. It would be difficult if one of them won and the others didn't and its not a good way to save long term for kids which is the whole reason for her doing it! For these reasons I wondered if anyone had any advice.