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

samnbaz

How about just being greatful for them doing it at all! My daughter is 12 and her grand parents bought her £150 of premium bonds and in 12 yrs she's had about 150 back too! It's not gaurenteed but has the potential to be better, they arnt going to loose anything

Mojisola

ollybass wrote: »

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.

http://www.nsandi.com/savings-premium-bonds
Investing for your child

Whether you want to give a unique birthday present or help start the savings habit early, Premium Bonds can make a special gift for your child or (great) grandchild.

You’ll need to nominate a parent or legal guardian to look after the Bonds until the child is 16. We’ll send the nominated parent the Bond record, any prizes won and any payment for cashed in Bonds.

You can choose either parent or guardian to look after a different set of Bonds for the same child. But the total invested for the child has to be within the current individual investment limit. We’ll give a separate holder’s number to each parent or guardian for those Bonds they look after for the child.

When you’re buying for your (great) grandchild, we’ll send you an acknowledgement of your investment. But only the nominated parent will be able to manage and cash in the Bonds.

begbeer

I buy my three grandchildren premium bonds each year and would be very upset if their parents cashed them in to reinvest in something else, their father is a independent financial advisor and has never suggested doing that even though he is not keen on premium bonds he is just grateful that I do it

colsten

Turning into a bit of a marmite debate, this thread. Too much emotion.

DiamondLil

Mmmm....
Toasted cheese and Marmite sandwiches...,..

happyinflorida

Talk - talk to them, talk to your partner/husband or wife or whatever first to see if they agree, do you or they get on better with the in-laws, as they'll be the better one to discuss this with them.

Ask if they're aware of the returns and do they think it might be better to change or do they like premium bonds for some reason?

Discuss it with them.

sclare

It's a gift. It will help your child in the future, and it gives the grandparents pleasure. Stop being such a control freak. The difference in the maturity value is not enough to be worth hurting the grandparents. Their pleasure and family goodwill is far more important than the few pounds extra.

Fujiko

ollybass wrote: »

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.

Just what I was thinking! The bonds will be in the grandparents' names who will receive any winnings and presumably pass on the money to the child. What sort of annual investment are you talking about? The minimum is £100 in premium bonds so unless they are giving considerably more the total will be £1800 by the time the child is 18 - a useful sum but hardly worth making a fuss about and possibly hurting the grandparents' feelings. Just be grateful for what you are getting.

colsten

I agree that it is probably counter productive and bad for family relations to talk determined grandparents (or other relations, and even parents) out of showering the little ones with premium bonds. But as we have financial education as part of the school curriculum now, the youngsters will hopefully be able before long to voice themselves that they don't want lottery tickets but proper investments into their future. Die-hard relies will of course still take offence and complain about ungratetful brood.

Nothing wrong with a couple of PBs, but a JISA or a trust fund with equities strikes me as a lot more sensible longer term.

pennypinchUK

Sounds like (yet) another simple answer - speak to them.

You may want to explain that you're grateful for them giving the gift but have they thought of your option. But many people like the thrill of Premium Bonds, so don't be surprised if they say they'd like to continue as they are.