Premium Bonds help please

A8-RICK

I would be greatfull if somebody could help with my following query?

My grandparent has very kindly offered to gift me £6000 in the way of premium bonds (the intention will be to use as a house deposit if the future).

He has given me a cheque for £6000 made payable to the post office. i am over 18 years old.

Whilst reading the NS&I leaflet, section 17 (who may buy and hold bonds) states the following:-

Bonds may only be held in the name of one individual person. You may only buy Bonds:
(a)for yourself if you are aged 16 years or over;
(b)for a child under 16 years if you are there parent, grandparent, or guardian; or
(c)on behalf of or in the name of a person who lacks capacity if you are his or her deputy with the power to make investments on hos or her behalf (or other person duly authorised in that behalf).


I do not seem to fit any of these catagory's i.e. the funds (cheque) would be direct from my gradparents bank. therefore, for the Bonds to be in my name i would have to cash the cheque in my bank and then purchase the Bonds with 'my' money?

any help appreciated , my grandparent wants to make sure all is done properly.

Thanks.

Lokolo

Yes thats how it would have to work. You wouldn't be able to buy PBs with that cheque.

Lorian

Aye you are catagory (a). you might need the cheque changing to make you the payee.

david78

Its quite alright to pay money into your own account, then you write a cheque to purchase the bonds (or apply on line if you like). Discuss with your Grandfather and get him to write another cheque in your name (give him the old cheque back to tear up obviously). You can show him the bonds you have purchased so he knows you haven't spent the money on anything else.

A8-RICK

Thank you for the replies,

It does say you can buy by cheque on the form but,

Am i right to say, if we sent the cheque off as he has already given me, then he is effectivly buying the bonds for himself, even if he puts my name and details on the form? bearing in mind im well over 16 years old.

The cheque deffinatly need to come from my bank?

i will print this off to show him thats all.

Thank you.

david78

A8-RICK wrote: »

The cheque definitely need to come from my bank?

Yes definitely.

Lansdowne

Might be worth going to the local post office and seeing if they would issue the p bonds with the cheque you have. If not, nothing lost except queuing time.

A8-RICK

Thanks again, that makes things much clearer :j

Stompa

It might be worth bearing in mind that the interest rate on premium bonds is currently 1.8%.

ariba10

I would enquire at the post office.

Although the cheque is from your grandparents account it is a gift to you. So it should be classed as your money.

(You can buy PBs online with a Debit card but I don't think that is much use to you)