Children's Bonus Bonds

khc

Absolutely furious - Letter received this week that Children's Bonus Bonds can no longer be reinvested after they reach the end of their 5 year term once the bondholder has reached 16.
My eldest child was thrilled with her 21st birthday nest egg last year, but her younger sibs are now going to get heir money in dribs and drabs over the next few years - (The NSANDI suggestion that the money could be put into an ISA assumes that we might not already be doing that.)
For 16 years we saved towards a 21st birthday present, and NSANDI have unilaterally decided ot change this. I can accept that this can be done for new purchases, but not happy that they have changed it for those which have prev been purchased on a 'mature at 21 basis'.

opinions4u

I can think of more important things to get furious about.

Stick the money in a five year term deposit. The rate will probably beat NS&I anyway.

xylophone

It occurs to me that your sixteen year old might want to take advantage of the Halifax JISA?
http://www.halifax.co.uk/isas/

POPPYOSCAR

xylophone wrote: »

It occurs to me that your sixteen year old might want to take advantage of the Halifax JISA?
http://www.halifax.co.uk/isas/

Am I understanding it correctly that if the child is over 16 the parent does not have to have an account running alongside this to get the top interest rate?

lucky77

khc - you have my sympathy. I am in exactly the same position. I was hoping to save my daughters bonds as a 21st gift the same as my son. It isn't possible to just put the Childrens Bonds into a 5 year bond when the child is 16 as the bonds mature in dribs and drabs over the next few years as yours do. Cashing in bonds early might be worth considering if there was a good 5 year rate around but I don't think there is!

xylophone

Am I understanding it correctly that if the child is over 16 the parent does not have to have an account running alongside this to get the top interest rate?

Yes this seems to be the case.
http://www.halifax.co.uk/savings/accounts/branch-accounts/#juniorcashisa
" For children 16 and over, the relationship interest rate will automatically apply to the account

If the Child is 16 or over the child will need to be present at account opening and their National Insurance Number will need to be provided."

Presumably this is because although the child cannot access the money in a JISA until age 18, he/she has control of the account from age 16.

https://www.gov.uk/junior-individual-savings-accounts/managing-an-account
"If your child is 16 or older they can:

become the registered contact for their Junior ISAs"

linni

KHC - I'm not happy either. I also got them so that at 21 they had a little nest egg. Also I could just forget about them until they were 21. I agree with everything you say. It shouldn't be allowed. I have no idea what to do now. Also DS's know they mustn't touch the money till 21 and if I put it in their ISA's, It'll be hard to stop my youngest from dipping into it!

It should not be allowed or, at the very least, they should have given more warning that they were going to do this.