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What happens at maturity?

Who controls the Bond?

Children’s Bonus Bonds are owned by the child, but until their 16th birthday they are controlled by their parent or guardian – regardless of who bought them. Only the parent or guardian can decide to cash in the Bond, but the money still belongs to the child. Once the child is 16, they control the Bond themselves.

At the end of each 5-year term

We’ll write to the person who controls the Bond shortly before the end of each 5-year term. We’ll give details of the interest rate and guaranteed bonus for the next five years, to help them decide what to do. They can choose to leave it invested and continue to earn tax-free interest and bonuses, or to cash in the Bond. There’s no need to do anything to continue the Bond – it will automatically start earning the new tax-free, guaranteed rate of interest. To cash in the Bond, just complete the form enclosed with the letter and return it to us.

On the child’s 21st birthday

We’ll write to the child shortly before their 21st birthday to tell them their investment is about to mature. We’ll add a final bonus on the child’s 21st birthday – the Bond is then mature and can be reinvested into another NS&I investment or cashed in. Either way, the child will need to complete the form enclosed with the letter and return it to us with the certificate of investment. When reinvesting into another NS&I investment please also enclose a completed application form for the chosen investment. Please note that no further interest is earned after the Bond has matured, so it’s important to send us instructions in good time.