Can we tell our child's benefactors which account to put cash in?

Spriggsy1990

Why do you not let the grandparents do their thing in buying premium bonds. Then any wins that come your way can be put into the childrens savings account. Everyones happy. And two lump sums are being built up - one in premium bonds, one in savings. Simples !

joehoover

I'd say no, what if they bought presents for birthday and Xmas, would you ask them for the cash instead?

You could in conversation talk about an ISA you set up and maybe this may cause them to consider the option. But I wouldn't suggest asking them to do that, it's a gift so treat it as such.

ollybass

As far as I know, premium bonds can NOT be transferred to other people and can only be cashed in to the registered owner. So the grandparents must have bought them with their own name(s) and address. Small children aren't allowed to own bonds so I assume the grandparents will put any winnings into the child's account. I also assume that they will also eventually cash-in the bonds to transfer their value to the child.

smartermind

lucyhen wrote: »

When I was a small child my grandmother saved religiously in the PO until I was 7 and then bought me £5 Premium Bonds. It was quite a lot those days - 1961. I've never won a thing with them but have hung on just the same - ever hopeful!

The longer you hold on to them the less value they have. It is as good as throwing the money down the drain! As you rightly said £7 in 1961 was worth a lot, today it is peanuts! If the money had been put in a deposit account, the value would have been better maintained. £7 in 1961 would be worth £140 today allowing for inflation. Unless you have a sentimental attachment to the premium bonds (and it appears you have), then spend the £7 while it still has value.

smartermind

Have the conversation and explain why jISA's are better value in the long term. If they agree, fine, if they don't then don't have a strop and just accept that they are wasting their own money and leave it at that.

smartermind

Spriggsy1990 wrote: »

Why do you not let the grandparents do their thing in buying premium bonds. Then any wins that come your way can be put into the childrens savings account. Everyones happy. And two lump sums are being built up - one in premium bonds, one in savings. Simples !

It is not the best of both world. If there are no winnings (as is most likely) there will be no savings. The premium bonds will meanwhile depreciate in value.

planteria

i would take the advice above in choosing to Invest, rather than Save, for your daughter..even if very cautiously.
and i would happily allow her grandparents to keep buying Premium Bonds for her, and wouldn't raise it with them at all.

janiebquick

Welcome to the minefield of inter-generational politics. While I agree with your desire for an investment with a better return for your child, you risk her getting nothing at all if you ask the grandparents to put the money in an ISA rather than a premium bond.

stmartinsdiver

Well I don't know where you found an account that pays a decent rate of interest since all rates are bad and have been for some years.
Unless you have very large sums in a savings account you can surely only be talking about a few ££'s a year interest anyway so why upset the grandparants when they have specifically chosen to buy premium bonds - and you never know, they might just win. Why not wait until interest rates go up then do a comparision with what could be earned in a savings account and if it's a worthwhile amount then talk to the grandparents about moving the money.?

JimmyTheWig

stmartinsdiver wrote: »

Well I don't know where you found an account that pays a decent rate of interest since all rates are bad and have been for some years.
Unless you have very large sums in a savings account you can surely only be talking about a few ££'s a year interest anyway

You can get 3.25% on a Junior Cash ISA.
Assuming grandparents are paying in £100 a year (that's the minimum for purchasing premium bonds) and money will stay for the next 16 years (we don't know how old the child is).
The child would earn around £490 in interest.
And would probably have won nothing in premium bonds.