Published On: Tue, Oct 8th, 2019

Can Premium Bonds be bought as a gift? How rules have changed about buying for children | Personal Finance | Finance

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Premium Bonds may not be for everyone, with interest not being paid on the savings each month. Instead, eligible Premium Bonds are entered into a monthly prize draw. They could then be selected for a prize – with prize levels ranging from £25 to the £1 million jackpot. The odds of winning anything per £1 Bond number stands at 24,500 to one.

Premium Bonds are a tax-free investment, meaning prizes are exempt from UK Income Tax and Capital Gains Tax.

While Premium Bonds cost £1 per Bond number, the minimum investment is £25.

There is also an upper limit, with this being £50,000.

Some people may want to buy Premium Bonds on behalf of someone else. Can Premium Bonds be bought as a gift?

While a person can gift Premium Bonds, there are some rules as to who they can be given to.

To buy Premium Bonds, a person must be at least 16 years old.

If a person has a child under 16, they can buy Premium Bonds online, by phone or by post, or by switching money from another NS&I account in the child’s name.

Now, it’s possible for any adults buy Premium Bonds for someone else’s child under 16 – however not everyone can do so by phone.

Previously, only a child’s parents, guardians or grandparents were able to buy Premium Bonds for them.

The NS&I Premium Bonds brochure also states that a person who is at least 16 years old can buy Premium Bonds for another adult if they are acting as their attorney or deputy.

It’s not possible to hold Premium Bonds jointly or in trust.

The winners for the October 2019 prize draw have been announced.

This month the prize fund was more than £96 million, and the total number of prizes exceeded 3.3 million.

This included two £1 million jackpot winners – whose details have been revealed on the NS&I website.

One of the winners is female and from Dorset, and has £50,000 invested.

The other is male and from Essex, and has £4,000 invested.

READ MORE: Premium Bonds: NS&I reveals three words which could suggest an online scam

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