NS&I Children's Bonds
Fixed for set terms
Tax-free for parent and child
Conditions for bonus payment
Can be cashed in early with a penalty equivalent to 90 days’ interest
Apply and cash in online, by phone or by post
means that the interest is exempt from UK Income Tax and Capital Gains Tax.
AER (Annual Equivalent Rate)
is a notional rate that illustrates what the annual rate of interest would be if the interest was compounded each
time it was paid. Where interest is paid annually, the quoted rate and AER are the same.