N&SI Children's Bonus Bonds

Karen's_girl

I am looking to save money for my niece and nephew. Are the Children's Bonus Bonds any good (for long tern savings)? Or would I be better off putting the cash elsewhere? I would be able to deposit small sums every few months or so.

Thanks,

BrandNewDay

Since you're not their parent, I believe that any money you give them can be saved in their savings account tax-free. I think there are better rates on Internet savings accounts than these bonds, aren't there?

baby_boomer

I think their only use is if you want to keep the money out of their hands in their first two years at universty and open these five year bonds with a lump sum just before their 16th birthday.

As BrandNewDay suggests, they are not great value.

Regular savers, however, are good value if you could manage to set up a regular payment and stick to it.

Karen's_girl

Thanks, BrandNewDay. It certainly looks as though the NS&I interest rate is poor value. I'll look up higher interest savings accounts instead.

Karen's_girl

Thanks, baby_boomer. I see your point. From what I understand, a bonus is paid when the child reaches 21 years of age. Not much use if they need the money for university at the age of 18.

I think a regular savings account is a great idea, particularly as I am the sort who forgets to add to my niece and nephew's accounts!