Buying NS&I Premium Bonds for a child? Read this guide first!

Buying NS&I Premium Bonds for a child has never been easier. Here, we explain how to apply, the minimum investment amount and how long it takes to complete the process.

Buying NS&I Premium Bonds for a child is a great idea as it's a gift that will (potentially) keep giving.

With the rules around buying for kids having recently been relaxed, anyone over the age of 16 can now buy Premium Bonds on behalf of a child, meaning aunts, uncles and even family friends can get involved.

What's more, the decision to slash the minimum investment amount from £100 to £25 means they're also a far more practical, or affordable, gift these days.

If you're sold on the idea, let's look at how to buy Premium Bonds for a kid.

Fancy buying bonds for yourself instead? Here are the easiest ways to purchase Premium Bonds.

Premium Bonds app. (Image: NS&I)

How to buy Premium Bonds for your child

If you want to buy Premium Bonds as a gift for your child, parents and legal guardians can apply online, over the phone or by post.

You’ll need to have been registered with NS&I regardless of whether you are buying for the first time or purchasing more Premium Bonds.

As mentioned, you’ll need to invest at least £25 in Premium Bonds, with each £1 you invest providing one unique bond number.

Every number has a separate and equal chance of winning a prize, so if you buy more, your chances of winning improve.

Premium Bonds checker: when are the winning numbers drawn?

Until your child’s 16th birthday, you'll be responsible for the bonds.

You’ll receive any confirmation of transactions, payment for cashed in bonds or prizes won until your child’s 16th birthday.

Want to find out if you've won anything? Check out this article for the latest results.

Buying Premium Bonds for someone else’s child

If you’re eager to treat your grandchild, niece, nephew or even the child of a family friend, you can apply either online or by post and request an electronic or paper gift card to pass onto the child.

An acknowledgement of your investment will also be sent, but only the nominated parent or guardian can manage and cash in the bonds.

Selling Premium Bonds: best ways to cash them in and withdraw your money

There are a few things to consider before buying Premium Bonds for someone else’s child.

Of course, you will need to ensure the parent or guardian is happy to look after the bonds and agree to you handing over their details.

These details include the parent or guardian’s date of birth and address, as well as the child’s Premium Bonds holder’s number (if they have one).

NS&I will check the identity and address of everyone on the application, so there’s a chance documentation will be required.

To avoid any surprises, you should let the parent or guardian know that NS&I may be in touch to ask for documents to verify their identity.

Premium Bonds explained: how to buy, how to cash in, when prizes are announced and more

How long does the process take?

If you're buying the bonds as a gift to mark a specific occasion, you'll need to plan ahead.

NS&I suggests you apply at least four weeks in advance to make sure everything is confirmed as the identity and address of everyone on the application form needs to be verified.

What happens if the child wins?

If the child beats the odds and wins a prize, it will be up to the parent or guardian to decide what to do with it. 

In terms of tax considerations, there's nothing to worry about. While a child can't earn more than £100 in interest each year from savings, because Premium Bonds winnings are prizes this doesn't apply.

As a final point, make sure the child's details are kept up to date: there are literally millions of pounds of unclaimed prizes held by Bondholders aged under 16.

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