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Media centre /
Press releaseCHILDREN TO BENEFIT AS NATIONAL SAVINGS AND INVESTMENTS INCREASES CHILDREN'S BONUS BONDS INTEREST RATE03 September 2003National Savings and Investments (NS&I) is increasing the interest rate on offer on Children's Bonus Bonds, the unique tax-free savings product designed for savings or investing for a child's future. The new Bonds (Issue 8), which will offer a tax-free rate of 3.55% - an increase of 0.35% on the current rate of 3.20% - go on sale on 4 September. Gill Cattanach, commercial director at NS&I sad: "New parents usually have enough to cope with just satisfying the needs of their newborn baby without having to think about the longer term costs of bringing up children, such as putting them through college or university and helping fund things like driving lessons or a deposit on a flat. "Children's Bonus Bonds are a tax-free, 100% secure investment which make an excellent gift and provide an first-rate opportunity for parents, grandparents, family members and even friends to help save money to give a child the best possible start in life." Children's Bonus Bonds earn interest at a rate fixed for five years at a time, with a guaranteed bonus every fifth anniversary. Bonds mature on the child's twenty-first birthday, when a final bonus is paid. They can be bought by anyone aged 16 or over for a child under 16. All interest and bonuses are tax-free, even if the child starts work and becomes a taxpayer before their Bonds reach maturity. ENDS Notes to Editors:New tax-free* fixed rates
* Tax-free means the return is exempt from UK Income Tax at all rates of taxation. ** AER stands for Annual Equivalent Rate and enables the comparison of interest rates from different financial institutions and across different products on a like-for-like basis. It shows what the notional annual rate would be if interest was compounded each time it was credited or paid out. Where interest is credited once a year the rate quoted and the AER will be the same.
Media team The numbers below are for media use only. Customers wishing to contact NS&I can find details here.
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