National Savings children’s bonus bonds are only available to those aged under 16 although they must be bought on their behalf by adults. They pay a fixed rate of interest and can be held until the child reaches 21. To get the best return, the Bonds must be held for five years to qualify for a bonus.
They are tax-free and so can be particularly good value for any young people who are taxpayers. They are sold in units of £25 and a child can have up to £1,000-worth of the current issue of bonds. Get the children’s bonus bond booklet NSA769 from post offices for further information.