Premium bonds for kids

FrozenGiraffe

I'm thinking of purchasing premium bonds in my children's names - it looks like I can do this, and as long as I withdraw the bonds before they turn 18 I can still access the money for myself if needed? Has anyone done this? Have I understood this correctly? 

anonmoose

I think you will find its 16 as I couldn't access my daughters for the purposes of getting them to pay winning bond cheques straight into a bank account as she had turned 16. She had to do it herself.

Malthusian

FrozenGiraffe said:

I'm thinking of purchasing premium bonds in my children's names - it looks like I can do this, and as long as I withdraw the bonds before they turn 18 I can still access the money for myself if needed?

If you've got enough money to keep £50,000 in Premium Bonds (£100,000 for a married couple) do you really need to steal your children's money that badly?

McKneff

If you put this money in your children's names then the money belongs to them. 
No matter what age they were. 
It would be theft if you withdrew their money and used it for yourself.
Same as if you put it in your mother's name. Her name, her money 

daveyjp

From NSI Premium Bond Agreement.

"Any Bonds bought and any prizes paid in relation to them will belong to the child. The parent or guardian will have responsibility for managing the Bonds and any prizes paid for the child’s benefit. The child will then begin to manage their own Bonds when they reach the age of 16"

BV88

I have a premium bonds account for my 2 year old son for which you can freely transfer funds between the NS&I account and your personal bank account both in and out exactly the same as the adult accounts, prizes are also paid into your account if you have selected that option.

If my son wins a prize I make a note to add it to his JISA or JSIPP. I fully intend to open my second child an account when she arrives later this year. PB's are a great product for additional rate tax payers that get no tax free savings allowance.

bis5

We saved for our son in premium bonds and wish we didn’t as above posters say your child will have control at 16 which we are not happy about as we wanted to build a nest egg but he is drawing it out when he wants the latest  game etc and has stopped reinvesting any winnings.
It’s  to young to give them the responsibility can they vote or take out loans at 16 no so why the law lets them do this.

MX5huggy

bis5 said:

We saved for our son in premium bonds and wish we didn’t as above posters say your child will have control at 16 which we are not happy about as we wanted to build a nest egg but he is drawing it out when he wants the latest  game etc and has stopped reinvesting any winnings.
It’s  to young to give them the responsibility can they vote or take out loans at 16 no so why the law lets them do this.

Start charging him board and lodging then. Or move to Wales then he can vote. 

Albermarle

bis5 said:

We saved for our son in premium bonds and wish we didn’t as above posters say your child will have control at 16 which we are not happy about as we wanted to build a nest egg but he is drawing it out when he wants the latest  game etc and has stopped reinvesting any winnings.
It’s  to young to give them the responsibility can they vote or take out loans at 16 no so why the law lets them do this.

So he will learn that if you spend all your money and have none left, then you can not buy more stuff you want. A valuable lesson, even if learnt the hard way.

Exodi

As a seperate issue to those raised above.

You mention premium bonds for your children (plural). Would you not be concerned that, should one of them actually win big, you will be put into a position where

"Right Bradley, since you're almost a big boy now I have a secret I want to tell you. Daddy invested money when you were little in premium bonds and it turns out you were very lucky and... you won't believe this... you won a million pounds... you're a millionaire bradley!"
"What about me daddy, am I millionaire?"
"No Isabel, you didn't win anything, only Bradley gets a million pounds. Welcome to life."

Ozzig

Exodi said:

As a seperate issue to those raised above.

You mention premium bonds for your children (plural). Would you not be concerned that, should one of them actually win big, you will be put into a position where

"Right Bradley, since you're almost a big boy now I have a secret I want to tell you. Daddy invested money when you were little in premium bonds and it turns out you were very lucky and... you won't believe this... you won a million pounds... you're a millionaire bradley!"
"What about me daddy, am I millionaire?"
"No Isabel, you didn't win anything, only Bradley gets a million pounds. Welcome to life."

I was about to add this exact comment, I put £500 in each, won nothing for a couple of years, then this month one won £25 - I know the chances of the big wins are slim but all the same, not sure I could look them in the face !

Interesting comments about withdrawing their funds though, I think (we've never needed to) we can withdraw money from their accounts so why would NS&I be any different?