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Children's Bonds

Invest tax-free for your children's future


How to invest

Invest tax-free for your children’s future

Children’s Bonds make great gifts at birthdays and Christmas – either for your own child or for your (great) grandchild. With an initial minimum investment of just £25, you can start a long-term investment that grows as the child does.

Changes

Already look after Children’s Bonus Bonds?

From 20 September 2012 we’re making some changes to how these Bonds work. The changes will affect maturing Bonds that are renewed on or after that date. We’re also changing their name to Children’s Bonds. Find out more here >


Summary box: key product information

Account name

NS&I Children's Bonds

Interest rates

Fixed for set terms, see interest rate below

Tax status

Tax-free for parent and child

Minimum investment

£25

Maximum investment

£3,000 per child per Issue

Conditions for bonus payment

Not applicable

Withdrawal arrangements

Can be cashed in early with a penalty equivalent to 90 days’ interest

Access

Apply and cash in online, by phone and by post


Interest

2.50% AER

Issue 35
Guaranteed rate over 5 years

How much could you earn?

Enter the amount you want to invest to find out how much the Bond would be worth at the end of the
5-year term.

Investment term: 5 years

Guaranteed rate: 2.5% pa compound including 5th anniversary bonus

Min purchase: £25

Max purchase: £3000

Tax status: Tax-free




Please note

  • This calculator is for guide purposes only and may not be exact.
  • Any Issue of Children's Bonds can be withdrawn from sale without notice
  • If the Bond is cashed in before the end of the term there is a penalty equivalent to 90 days’ interest on the amount cashed in

Definitions

Tax-free means that interest is exempt from UK Income Tax and Capital Gains Tax.

AER (Annual Equivalent Rate) illustrates what the interest rate would be if interest was paid and compounded once each year.


Apply

The information below is designed to help you decide if this investment is right for you. If you’re still not sure, you may want to consult a financial adviser.

Search for a financial adviser


They may be right if you:

  • want a long-term, tax-free investment for your child’s future
  • want to know exactly what return you’ll get
  • can leave the investment for five years at a time
  • have £25 or more to invest

They may not be right if you:

  • want to invest for a young person over 16
  • want an account that the child can control
  • think the child might need access to the money early
  • if you are not the child’s parent, legal guardian or (great) grandparent

Right for you?

Find out more about our Children’s Bonds, including who can invest, investment limits and interest rates…

Find out more

Ready to invest?

Find out what information you need to have to hand and what to do next.

Apply now

Not right for you?

Also consider:

See our full range

Apply

How do our Children's Bonds work?

Investing in Children’s Bonds is very straightforward. You can choose how much you want to invest for the child (any amount between £25 and £3,000) and we add interest at a fixed rate each year for five years. We sell Bonds in separate ‘Issues’ – each of which has its own fixed rate of interest. The interest rate is guaranteed, so you know how much the investment will earn at the end of the 5-year term.

The interest is completely free of UK Income Tax and Capital Gains Tax – for the child and the parents.


The child’s parent, legal guardian, or (great) grandparent can buy new Bonds for a child under 16. The person buying the Bond will need to nominate one of the child’s parents or guardians to look after the Bond until the child is 16.

We’ll send the investment record, statements and any other correspondence to the parent or guardian nominated on the application.

If you’re buying for a (great) grandchild, we’ll send you an acknowledgement.


No, you can only invest for your own child, or (great) grandchild. If other family members and friends want to give a financial gift to the child, they can give the money to the parent, guardian or (great) grandparent to invest on the child’s behalf.


Children’s Bonds are owned by the child, but until their 16th birthday each Bond is controlled by the parent or guardian nominated on the application – regardless of who bought the Bond. The person looking after the Bond must have legal parental responsibility for the child.

We will send the investment record, statements and any other correspondence to the parent or guardian named on the application. When the child is 16 they will take responsibility for their own Children’s Bonds, so we’ll then send any correspondence to the child.


Minimum

The minimum for each investment is £25.

Maximum

The maximum you can invest is £3,000 per child per Issue.


Each Issue has its own guaranteed interest rate.

You can check the current interest rates here

To find out how much a Bond would be worth when it matures, use our interest calculator >


With Children’s Bonds, the interest is completely free of UK Income Tax and Capital Gains Tax – for the child and the parents. Even if the child starts work and becomes a taxpayer before cashing in their Bonds, they still won’t have to pay tax on the interest.

The tax treatment depends on your or your child's individual circumstances and may change in future.

Find out more about tax and savings


To get the full return from the child’s Bond, you will need to keep the money invested for the whole of the 5-year term. The person who looks after the Bond can cash it in at the end of its term with no notice and no penalty.

If the child does need access to the money before the end of the five years, it can be cashed in early, but we will deduct a penalty from the payment. The penalty will be equivalent to 90 days’ interest on the amount you cash in.

If part of a Bond is cashed in at least £25 must remain invested for the Bond to stay open.

Find out more about how to cash in Children's Bonds


We’ll write to the person who looks after the Bond around 30 days before the end of the term, to explain the options. To make sure we can get in touch at this important time, please let us know of any change of address or contact details.

If the child is under 16

We’ll write to the nominated parent or guardian.

If the child is 16 or over

The child will then be responsible for the investment so we’ll write to him or her to explain their options.


The parent or guardian who is responsible for the child’s Bond can choose to manage it online and by phone.

What you can do online and by phone

Once you’ve registered and heard from us that your service is up and running, you’ll be able to:

  • apply for Children’s Bonds (when Issues are on sale) and other NS&I accounts and investments
  • keep track of your and your child’s money with NS&I
  • cash in
  • keep your details up to date including your address, email and nominated bank accounts
Find out more and register for our online and phone service

And don't forget, you can also manage your child's Bond by post too.


Apply

About the terms and conditions


Please read the terms and conditions before you apply for NS&I Children’s Bonds.

We last updated the Children’s Bonds terms and conditions on 22 April 2013.


Description

1. This agreement applies to National Savings and Investments (“NS&I”) Children’s Bonds (“Bonds”), and these terms and conditions have been set pursuant to section 12 of the National Loans Act 1968. These terms and conditions set out the obligations we have to you, as a customer, and the obligations you have to us. Please read these carefully and keep for reference.

2. Bonds are a UK Government security subject to the Savings Certificate (Children’s Bonus Bonds) Regulations 1991 (Statutory Instrument Number: 1991/1407) as amended or re-enacted from time to time (see paragraph 112). In the event of any differences between these terms and conditions and the Regulations, the Regulations will prevail.

Definitions

3. In these terms and conditions:

4. For the purposes of these terms and conditions, any references to “we”, “us” or “our” are references to the Director or those acting under the Director’s authority.

Meaning of complete month

5. For the purposes of these terms and conditions, a month is completed at the end of the day immediately before the same date as the date of purchase of a Bond, but in a month following the month of purchase (for example, for a Bond purchased on 5 January, the first month is completed at the end of 4 February).

6. Where the date of purchase was 29, 30 or 31 of a month, and a later calendar month does not contain such a date, the relevant month is completed at the end of the day preceding the last day of that calendar month (for example, for a Bond purchased on 31 March, the first month is completed at the end of 29 April).

7. In the case of a Bond with a purchase date of 29 February, every 12th month will be completed at the end of 27 February, even where that month falls in a leap year.

Investment terms

8. A Bond earns interest at a rate fixed for a 5-year term.

9. The last day of the term will be the day which immediately precedes the relevant anniversary date (for example, the last day of a five year term beginning on 5 January 2013 will be 4 January 2018).

Issues of Bonds

10. Each Bond issued belongs to an “Issue”. Each Issue has a specific interest rate that applies to it.

11. Any Issue can be withdrawn from sale without notice. An application can only be accepted for the Issue on sale on the date of purchase (see paragraphs 30 and 31).

12. Some Issues may be exclusively available:

13. The details applicable to each Issue on general sale offered under these terms and conditions will be:

14. The details applicable to Issues exclusively available to existing Bond holders with maturing Bonds will be provided in the pre-maturity information that nominated parents or guardians receive when existing Bonds are due to mature.

Interest

15. Subject to paragraphs 49 and 76 to 78 inclusive, interest is earned for each day a Bond is held based on the value of the Bond at the end of that day. For this purpose the value of the Bond will be reduced by any repayments dated for that day (see paragraphs 58 and 60).

16. Interest is earned on a daily basis at 1/365th of the annual interest rate for each day.

17. We will add any interest earned to the value of the Bond annually on the anniversary date. It will then form part of the capital value of the Bond which will earn further interest unless the Bond is cashed in. The capital value of the Bond after the annual interest has been added will be rounded to the nearest penny.

18. If the anniversary date falls on a day which is not a banking day, the Bond will not be credited with interest until the next banking day. If the anniversary date falls on 29 February, interest will be added on 28 February, even where that month falls in a leap year.

Tax

19. Sums payable in respect of interest on investments held within allowable holding limits and in accordance with these terms and conditions will be free of UK Income Tax and Capital Gains Tax.

Who may purchase and hold Bonds

20. Bonds may be bought for a person under 16 years of age, by their parent, legally appointed guardian, grandparent or great-grandparent.

21. Bonds may only be held in the name of, and for the benefit of, the Bond holder.

22. A Bond may not be held in the name of more than one person.

23. A parent or guardian (see paragraph 3(i)) must be nominated to receive correspondence and control the Bond until the Bond holder is 16 years of age.

How to purchase Bonds

24. Subject to paragraph 25, an application to purchase Bonds can be made:

25. Only applications to purchase made by a parent or legally appointed guardian can be made via the internet and by telephone. Applications made by grandparents or great-grandparents can only be made by post.

26. As Bonds have a specified term, it is not possible to invest further money in a particular Bond once it has been issued. Where Bonds of a particular Issue have been purchased on different dates, a new Bond will be issued in respect of each purchase.

27. Where an applicant applies by telephone or via the internet, the Bond must be purchased using a debit card in the name of the applicant issued by a UK bank or building society.

28. Where an applicant makes an application via the internet or by telephone and this is their first application, the applicant must confirm the application by signing and returning a confirmation form we will send to them by post. The form will specify the time within which the signed form must be returned to us. If the form is not received by us within the specified time we will not be able to process the application. If this is the case any money paid to us will be refunded to the relevant debit card or by issuing a crossed warrant (like a cheque). However, we reserve the right to use a different method of payment if necessary. No interest will be earned or paid for the intervening period.

29. When an application is made by post the Bond must be purchased using a cheque drawn on a UK bank or building society account held by the applicant, or by a building society branch cheque or banker’s draft.

30. In all cases, an application to purchase is subject to acceptance by us.

31. Once an application to purchase has been accepted, the date of purchase will be the date that the completed application to purchase was received by us. For these purposes:

Evidence of identity

32. Under legislation relating to money laundering we are required to verify the identity and address of our customers before we can accept an application to invest. To do this we may make electronic checks using data from a third party including information from the Electoral Register. In accepting the terms and conditions the applicant confirms that they, and anyone else named on the application, are aware that their identity and address will be checked.

33. We may also request documentary evidence of identity and address. The request for evidence of identity will specify the time within which the evidence must be returned to us. If the evidence is not received by us within the specified time we will not be able to process the application. We accept no responsibility for documents which are lost in the post, or affected by postal delays. Proof of posting will not be accepted as proof of delivery.

34. If we are unable to process an application due to lack of evidence of identity, the application will be cancelled from inception and any money paid to us will be refunded to the relevant debit card or by issuing a crossed warrant (like a cheque) to the purchaser named on the application form. However, we reserve the right to use another method for payment if necessary. No interest will be earned or paid for the intervening period.

Cancellation rights

35. As Bonds are a fixed rate investment with a set term, there is no right to cancel after investment. However Bonds can be cashed in at any time. If a Bond is cashed in prior to maturity a penalty will be applied (see paragraphs 45 to 52).

Purchase and holding limits

36. The minimum value Bond that may be purchased is a £25 Bond.

37. An applicant may not apply to purchase a Bond if immediately after that purchase the Bond holder would hold more than £3,000 (at purchase price) of Bonds of that Issue.

38. Renewed investments are not subject to the limits on purchasing Bonds set out in paragraph 37, nor do they count towards a person’s holding for the purposes of determining whether any other application to purchase further Bonds on their behalf may be made. For example, a nominated parent or guardian could renew a maturing £3,000 Bond into a particular Issue and could purchase up to an additional £3,000 in that Issue, if that Issue is on general sale (see paragraph 12).

39. If an applicant should complete an application in error which would take the total holding of a Bond holder in a particular Issue over the holding limit then, in respect of the excess amount:

Control of the Bond

40. Until the Bond holder is aged 16, control of the Bond will rest with the nominated parent or guardian.

41. Subject to paragraph 43, the nominated parent or guardian, or court-appointed deputy, shall have the same authority to control the Bond as a Bond holder aged 16.

42. All correspondence relating to the Bond (including the investment record and anniversary statements (see paragraphs 71 to 74 inclusive)) will be sent to the nominated parent or guardian.

43. While the Bond holder is aged under 16 the Director will only repay a Bond, or part of a Bond, to a person who satisfies the Director that he or she is a proper person to receive payment on behalf of the Bond holder. This will normally be the nominated parent or guardian.

44. Except where a deputy has been appointed, the Bond holder will obtain control over a Bond when they have reached the age of 16.

Cashing in

45. Bonds purchased by cheque or debit card can only be cashed in after payment has cleared. However, in certain circumstances, we may allow Bonds purchased by debit card to be cashed in before the payment has cleared. If we so allow, we will repay the sum requested to the debit card from which the payment was made.

46. It will normally take seven banking days from the date of purchase for payments to clear. For example, if we receive a cheque on a Monday, the payment will be cleared on the Tuesday of the following week. One additional day should be allowed for each English bank holiday. The same clearance periods apply for debit card payments.

47. For internet or telephone applications to cash in made via the Service, repayment will be made by electronic transfer to the nominated bank account (see paragraph 53).

48. For postal applications to cash in, repayment will normally be made by electronic transfer to the nominated bank account. However in certain circumstances we may accept requests for repayment to be made by crossed warrant (see paragraphs 60 and 61).

Penalty

49. Except where paragraph 50 applies, a penalty equivalent to 90 days’ interest on the sum requested, at the interest rate the Bond is earning, will be deducted from the repayment. This penalty also applies to Bonds held for less than 90 days, and this means that if a Bond holder cashes in an entire Bond that they have held for less than 90 days, they will get back less than they originally invested.

50. No penalty will be charged:

51. Partial encashments Bond holders may cash in part of a Bond, subject to the payment of the penalty for early repayment (see paragraph 49).

52. There is no minimum limit for repayments. However, where a Bond holder is requesting a partial encashment, at least £25, excluding interest which has not yet been added, must remain invested in that Bond, otherwise the request will be rejected.

Repayments by electronic transfer

53. Where repayment is to be made by electronic transfer, repayments will normally be made to a UK bank account (including an NS&I Direct Saver) or building society account in the Bond holder’s name, or in the name of the person with parental responsibility. The account to receive such repayments must be nominated at the time of the application to invest. Any applications to invest that do not contain nominated bank account details will be rejected.

54. We intend to use BACS as the means of making these electronic transfers (although we reserve the right to use a different means if necessary).

55. The nominated bank or building society account must be capable of receiving payments via BACS.

56. For telephone or internet applications to cash in, we will normally initiate the electronic transfer within three banking days of receiving instructions.

57. For postal applications to cash in, we will normally initiate the electronic transfer within five banking days of receiving instructions.

58. Once we have initiated the electronic transfer, the date of repayment, for the purposes of these terms and conditions, will be considered to be the date on which, in the normal course, the requested amount would be credited to the specified bank or building society account. In the case of BACS, this is normally two banking days after we initiate the transfer.

59. Where an electronic transfer is initiated properly we will not be liable for:

Repayments by crossed warrant

60. In exceptional circumstances payment can, on request, be made by crossed warrant (like a cheque). In such cases the date the Bond is cashed in will be taken to be the date on the warrant.

61. We will normally put the warrant in the post within five banking days of receiving the instructions to cash in.

Amount due when cashing in the entire Bond

62. The amount due when a Bond is cashed in on the maturity date will be the capitalised value of the Bond (see paragraph 17).

63. The amount due when a Bond is cashed in on an anniversary date (except where it is also the maturity date) will be the capitalised value of the Bond (see paragraph 17) less any penalty deducted (see paragraphs 49 and 50).

64. The amount due when a Bond is cashed in between anniversary dates will be the capitalised value of the Bond (see paragraph 17) (or the original Bond value if the Bond has been held for less than one year) plus interest earned at 1/365th of the annual interest rate for each day held since the last anniversary date (or date of investment if the Bond has been held for less than one year) less any penalty deducted (see paragraphs 49 and 50).

65. The amount due when a Bond is cashed in will be rounded to the nearest penny before the repayment is made.

Repayment of Bonds by NS&I

66. We can repay Bonds immediately, without needing an application to cash in, if:

Giving us instructions

67. Instructions can be given:

68. Payment instructions cannot be changed or cancelled once they have been given to us because we start processing them as soon as we receive them.

69. We may refuse to act on instructions if:

70. If we refuse to act on instructions we will notify the Bond holder and, if possible, give our reasons for doing so. Bond holders can obtain information about the refusal and, where appropriate, our reason for refusing, along with information on how to correct any errors that led to the refusal, by contacting us using the details at the end of these terms and conditions (unless we are prevented by legal obligations, or circumstances beyond our control, from providing this information).

Statements and investment records

71. The Bond holder, or the nominated parent or guardian, will receive an anniversary statement showing all transactions since the end of the period covered by the previous anniversary statement or, from the date of purchase if the Bond has been held for less than a year, to the most recent statement date. The statement will include details of all transactions and interest added to the Bond.

72. Bond holders, or the nominated parents or guardians, can request, at any time, an interim statement of all transactions on the Bond. This statement will include all transactions since the last anniversary statement (see paragraph 71) or the date of investment if the Bond is in its first investment year.

73. The Bond holder, or the nominated parent or guardian, will receive an investment record every time a new Bond is purchased on behalf of the Bond holder or a partial encashment is made. The investment record will confirm the details of the transaction that has taken place and, in the case of a partial encashment, the new value of the Bond immediately following that encashment. Bond holders, or the nominated parents or guardians, can request a duplicate investment record at any time.

74. When a Bond is repaid in full the Bond holder, or the nominated parent or guardian, will receive a closing statement. The closing statement will include details of all transactions and interest added to the Bond since the last anniversary statement was issued (or since the date of investment if no anniversary statement has yet been issued in respect of the Bond (see paragraph 71)).

75. The Bond holder, or the nominated parent or guardian, is responsible for checking the information we provide and must tell us as soon as possible if it includes something which appears to be wrong or if a repayment was not made in accordance with the instructions given.

Retention after the fixed rate term

76. If the Bond holder is under the age of 16 at maturity, a Bond may be eligible to earn interest for a further five year term. The Treasury will decide whether this will apply and, if so, what the interest rate will be. We will contact the nominated parent or guardian, using the last recorded contact details at least 30 days before the end of the term to tell them of the Treasury’s decision.

77. The interest rate set by the Treasury for any further term may be different from the interest rate earned previously on the Bond. Typically, the Treasury will decide to set a different interest rate to enable us to respond proportionately to a change, or an anticipated change, in:

78. If a Bond is eligible to earn interest for a further term, and we have not received a request to cash in that Bond before the maturity date, the rate of interest set by the Treasury for the further term will be applied automatically and will be guaranteed for the whole of the further term.

79. When a Bond begins a further term in accordance with paragraph 76, the terms and conditions applicable to that Bond for that further term shall be those specified on NS&I’s website, at the point at which that further term begins, for the Issue which is current at the time. This may mean that the terms and conditions applicable to the Bond will change. If we notify the nominated parent or guardian that the Treasury has decided that the Bond is eligible to earn interest for a further term, that notice will include a copy of the terms and conditions that will apply for that further term. The nominated parent or guardian should contact NS&I if they do not receive notice of the options when the Bond is due to mature.

80. The Bond holder, or nominated parent or guardian, will remain free to cash in the Bond at any time, including for investment into another Issue or another NS&I product, under the normal rules for cashing in as set out in paragraphs 45 to 52 inclusive.

Telephone and internet service

81. We offer the opportunity for a parent or guardian (see paragraph 3(i)) to purchase and manage a Bond via the telephone and/or internet. The Service is offered to a nominated parent or guardian, or Bond holders (when they reach 16 years of age) and, where a Bond holder lacks capacity or has created a valid Power of Attorney, a limited Service is offered to those entitled to manage their Bond (each a “prospective user”). To use the Service to both purchase and manage a Bond, a prospective user will need to register either by telephone or via the internet as part of an application to purchase. If a prospective user wants to register to use the Service to manage a Bond that has already been purchased, they will need to complete a registration form (available from us or to download from our website) and return it to us for processing. Deputies and attorneys can only register to use the limited Service by completing the registration form and returning it to us for processing.

82. If a prospective user registers as part of an application to purchase made over the internet, they will be asked to supply security information and choose a password. If the prospective user is an existing customer who has already registered to use the Service, they must use their existing security information and password to purchase and manage the relevant Bond (see also paragraph 85).

83. If a prospective user registers as part of an application to purchase made by telephone, they will be asked to supply security information. After registration, we will send a temporary password to the registered user. Before the registered user can manage the Bond using the Service, they will need to change the temporary password to one of their own choosing. This temporary password will expire after 60 days so the registered user will need to change it before then. If they do not change their temporary password before it expires we will issue them with a new password when they next contact us. The new temporary password must be changed within 60 days.

84. We will use the password and security information to verify the identity of the person seeking access to the Service. If for any reason a registered user wishes to change their security information or password they can do so via the internet, or by calling us. We may ask for any change to be confirmed in writing.

85. Registered users must take reasonable precautions to prevent unauthorised use of the Service. They should not disclose any information which will give access to the Service to anyone other than us. They should not record their password or security information in any way that may result in them becoming known to another person.

86. Please note that after initial registration we will never contact registered users, or ask anyone to do so on our behalf, with a request to disclose security information in full. If a registered user receives any such request from anyone (even if they are using our name and logo and appear to be genuine) then it is likely to be fraudulent and security information should not be supplied under any circumstances. Registered users should report any such request to us immediately.

87. The Bond holder, or the nominated parent or guardian, will be responsible for any instructions received by us between the time a registered user passes the security procedure until the time that registered user exits from the Service. Please note that this includes any input errors or instructions sent by someone other than the registered user, so registered users are asked not to leave the device they are using to access the Service unattended while logged on.

88. Please note that we are entitled to repay Bonds where instructions to cash in have been given through the Service, if particulars of the security information were correctly provided.

89. If a registered user has reason to suspect that their security information and/or password have become known to a third party, they should immediately notify us by telephone. We may ask for this to be confirmed in writing.

90. While we will make reasonable efforts to provide the Service, we will not be liable for any failure to provide the Service, in part or full, for any cause that is beyond our reasonable control. This includes, in particular, any suspension of the Service resulting from maintenance and upgrades to our systems or the systems of any party used to provide the Service.

91. We may, where we consider it is appropriate for the protection of Bond holders, suspend, withdraw or restrict the use of the Service or any part of the Service. We will inform Bond holders, or nominated parents or guardians, as soon as practicable if we take such action. We may also end the Service or any part of the Service at any time by giving registered users reasonable notice.

Liability

92. If a Bond holder, or a nominated parent or guardian, tells us that an application to cash in was not authorised, we will carry out an investigation. As soon as we are reasonably satisfied that the application to cash in was unauthorised, we will, subject to paragraph 93, refund the amount repaid and return any relevant Bonds to the position they would have been in if the unauthorised repayment had not taken place. This means that, in addition to the amount of the unauthorised repayment, we will refund any interest on the amount incorrectly paid but we will have no further liability.

93. However, we will not give a refund if the Bond holder (or nominated parent or guardian) has acted fraudulently.

94. If a Bond holder (or nominated parent or guardian) asks us to make a repayment by electronic transfer and, after a reasonable period has elapsed, the bank or building society to which repayment should have been made says that it did not receive the repayment, we will, subject to paragraphs 95 and 96, refund the amount of the repayment and return any relevant Bonds to the position they would have been in if the repayment had not been made.

95. We will not make a refund pursuant to paragraph 94 if there was a mistake in any of the details contained in the instructions to cash in. In such circumstances, we will, however, make reasonable efforts to recover the funds for the Bond holder.

96. We will not make a refund pursuant to paragraph 94 if we can show that the repayment was in fact received by the bank or building society to which repayment should have been made.

How we use your information

97. We may use any information provided to us to help us:

98. We treat all information we hold concerning customers as private and confidential. We will not reveal any personal details or details concerning a customer’s investments to anyone not connected with NS&I, unless:

99. When giving us information about another person, the person providing the information is required to confirm that they have been appointed to act on behalf of that other person. This includes providing consent to process that other person’s data as set out in these terms and conditions.

100. We may monitor or record telephone calls for training, quality assurance and other business purposes.

101. The NS&I website uses cookies to collect anonymous data in order to administer the website. It is possible to set internet browser software so as to disable the use of cookies. Please note however that application forms and other processes require the use of cookies for correct operation.

102. From time to time we may change the way we use customer information. Where we believe that customers may not reasonably expect such a change we will notify them personally. If customers do not object to the change within 60 days, we will deem them to have consented to that change.

103. Customer information will be held by us in both paper form and on our IT systems and will be kept after Bonds have been repaid in full, in line with our retention procedures. Customers wishing to obtain a copy of the information we hold about them can make a Data Subject Access Request under the Data Protection Act and send it to: The Data Protection Officer, National Savings and Investments, 1 Drummond Gate, London SW1V 2QX - make sure the request is signed. A Data Subject Access Request form is available to print off and complete in the 'Privacy' section of the NS&I website. Alternatively, customers can write to the Data Protection Officer giving us their full name, current address and any previous addresses, which savings or investments they have with us and the account, holder's or customer numbers. There may be a small charge for this service - if so, we will make this clear.

104. We would like to keep customers up to date with information about our products and services which we think might interest them. If a customer does not want to receive this information they can contact us using the details at the end of these terms and conditions.

How to notify us of changes to personal details

105. To enable us to manage Bonds effectively and to be able to contact Bond holders, or nominated parents or guardians, when necessary we ask that they let us know, as soon as possible, of any changes in name, address, telephone number or email address. Bond holders, or nominated parents or guardians, should also ensure that their nominated bank account details are kept up to date. If they are registered to use the Service they should notify us of any such changes by telephone, or update their details on the internet. Otherwise they should write to us at the address at the end of these terms and conditions.

Complaints

106. If we make a mistake we’ll aim to put things right quickly and without fuss, and we have a procedure designed to resolve complaints effectively and fairly. Complaints can be made in writing to the Customer Service Team at the address at the end of these terms and conditions, by calling us free on 0800 092 1286 (calls from mobiles and some landline providers may not be free), or by visiting nsandi.com, clicking ‘Contact us’, clicking on the ‘Contact us online’ button in the ‘Email us’ section, and selecting ‘complaint’ in the ‘subject’ dropdown menu. A leaflet describing our complaints procedure is available on request or to download at nsandi.com, by clicking ‘Why save with us’, clicking on ‘Our commitment’ and then clicking on the link under the heading ‘Not happy with our service?’.

107. If a customer feels that we have not resolved their complaint to their satisfaction, they may be able to refer it to the Financial Ombudsman Service (the “FOS”) at South Quay Plaza, 183 Marsh Wall, London E14 9SR (Tel 0800 023 4567). The FOS is an organisation set up by law to give consumers a free and independent service for resolving disputes.

Changes to these terms and conditions

108. The Treasury reserves the right to amend these terms and conditions at any time.

109. Typically, changes will be made pursuant to paragraphs 79 and 108:

110. If a change is to the Bond holder’s detriment we will let them, or the nominated parent or guardian, know personally at least 30 days before the change. If this is the case they can switch to another NS&I product or cash in the Bond without notice or penalty within 60 days of us telling them.

111. For any other changes we will let customers, or the nominated parents or guardians, know by updating our website and, if appropriate, publishing a notice in a range of national newspapers.

Regulations

112. As at 1 April 2013, The Savings Certificates (Children’s Bonus Bonds) Regulations 1991 (Statutory Instrument Number: 1991/1407) have been amended by the following Statutory Instruments:

1992/3113 1997/1860 2005/445(S) 2005/2078 2005/2114
2007/1898 2010/291 2012/1880    

 

113. Copies of UK legislation can be purchased from the TSO Parliamentary and Legal Bookshop.

Law and jurisdiction

114. These terms and conditions and any agreement made on the basis of them will be governed by and interpreted in accordance with English law.

115. In the event of the death of a Bond holder, the Director reserves the right to make any payment in respect of the Bond in accordance with the law of the place in which the Bond holder resided, or if different, was domiciled at the date of their death.

116. Subject to paragraphs 117 and 118, the courts of England are to have exclusive jurisdiction to settle any dispute (including claims for set off and counterclaims) which may arise in connection with these terms and conditions or any agreement made on the basis of them and which, subject to the Regulations, falls to be determined by a court of law.

117. Where section 16 of the Civil Jurisdiction and Judgments Act 1982 applies the relevant court of law of the relevant part of the United Kingdom shall have jurisdiction to settle any such dispute.

118. Paragraphs 116 and 117 are included for the benefit of NS&I. Accordingly NS&I retains the right to bring proceedings in any other court which has jurisdiction to whose jurisdiction the Bond holder irrevocably submits.

Children’s Bonds
National Savings & Investments
GLASGOW
G58 1SB
Telephone 0500 007 007
Fax 0141 636 8744
Visit our website nsandi.com

22 April 2013

PLEASE KEEP FOR REFERENCE


Apply

Before you start

You can apply online or by phone if you’re the child’s parent or guardian – (great) grandparents will need to apply by post.

You must read all the information to make sure this investment is right for you. You'll also need to read and accept the terms and conditions below before applying. If you have recently purchased Children’s Bonds and would like to buy some more online, you will need your NS&I number and password. If you don’t have these yet you can still buy more Children’s Bonds by post in the meantime.


What you need before you apply

  1. Your debit card details
  2. A valid email address, so we can send confirmation that we’ve received your application
  3. Your child’s holder’s/account number , if he or she already has Children’s Bonus Bonds or Children’s Bonds
  4. Your NS&I number and password , if you're already registered for our online and phone service

You can apply online or by phone if you’re the child’s parent or guardian – (great) grandparents will need to apply by post.

Already look after Children’s Bonds or Children's Bonus Bonds? If you have moved , you’ll need to tell us by post before you apply.


You’ll need to check whether local regulations allow you to invest in NS&I Children’s Bonds. It’s also worth checking the tax position in their country of residence before buying Bonds. If the parents and/or purchasers of the Bond live outside the UK, they will need to send us documents as proof of their identity and address.

In these cases you can only apply by post. And if you live in the European Union, you’ll also need to send us your Tax Information Number and date and place of birth. Call us on +44 1253 832007 for full details before you apply. Charges will be at the rate of your international phone provider.


You can apply by phone by calling us on 0500 007 007 (only the parent or guardian of the child can apply by phone). Or you can apply by post by downloading an application form


If you apply online, we will send you an email confirming that we’ve received your application. For both online and phone applications, we may post you a confirmation form to sign and return.

However you apply, we may also ask for proof of identity and address for anyone named on the application, including the child.

If we ask you to sign a form or send us some documents, we need to receive them from you within 30 days of the date you applied. So please make sure you reply in good time.

Once we’ve processed your application, we’ll send the investment record to the nominated parent or guardian.

Cancellation rights

As a Children’s Bond is a fixed rate investment with a set term there is no right to cancel after you invest. However, you can cash in early if you need to, subject to a penalty equivalent to 90 days’ interest.


Has your child ever held Children’s Bonus Bonds or Children’s Bonds?

Only the parent or guardian of the child can apply online.


Your information

It is important that you read and understand the section entitled 'How we use your information' in our terms and conditions.




Apply now

Manage existing Bonds

Children’s Bonus Bonds, now known as Children’s Bonds, will start changing on 20 September 2012

Changes

This means that the way you can look after your Bond depends on when you invested in it.

If you invested in, or renewed, the Bond before 20 September 2012, find out more >

If you invested in, or renewed, the Bond on or after 20 September 2012, find out more >

If the changes affect your child’s Bond, we’ll write to you around 30 days before the Bond matures. Below is a brief overview of the changes.


What’s new with Children’s Bonus Bonds?

The changes at a glance


Financial changes

  • penalty for cashing in early
  • single annual rate of interest for each Issue (no bonus)

New name

  • they’ll be called Children’s Bonds instead of Children’s Bonus Bonds

Looking after your child’s investment

  • annual statements to help you keep track
  • new online and phone service

Rules for investors

  • Bonds can no longer be held until the child’s 21st birthday
  • only parents, guardians and (great) grandparents can invest
  • no longer sold in units of £25

If your child has a Children’s Bonus Bond, don’t worry. The changes will only affect their Bond if it matures on or after 20 September 2012, and you choose to renew it for a further term. So you don’t need to do anything yet.

We’ll write to you around 30 days before your child’s Bond matures, to remind you that it’s time to decide what to do with the money. We’ll include full details of the changes, together with information explaining your choices for renewing or cashing in. If your child will be 16 or over on the maturity date, we’ll write directly to them as they will be responsible for the Bond.

Find out more about the changes


For Bonds invested in or renewed before 20 September 2012

Before

This information is for customers who invested in, or renewed, Children’s Bonus Bonds before 20 September 2012.

If you have any Bonds that you invested in or renewed on or after 20 September 2012, you can find out more here>


If you want to buy new Bonds for your child or grandchild, remember that they are now known as Children’s Bonds and there are new rules for investing, including a penalty for cashing in early. Please read the key features and terms and conditions carefully before applying.

Each time we release a new Issue of Children’s Bonds, you can invest up to a further £3,000 for each child, regardless of how much the child already holds in previous Issues. The minimum for each investment is £25.

Find out more

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

We’ll post any correspondence to the parent or guardian nominated on the initial application form. Where both parents or guardians are nominated, we’ll post all correspondence to the first person named on the application.

If Bonds are managed jointly and either parent or guardian lets us know of a dispute, we will continue to hold the funds on behalf of the child until they turn 16 when they take control of the Bonds.


If the child needs access to the money, the nominated parent(s) or guardian(s) can cash in Bonds without notice at any time. You can cash in all of them or some of them in units of £25. We’ll repay the money along with any interest and bonuses earned.

If you cash in a Bond between anniversary dates, you’ll receive the value at the previous anniversary plus daily interest since then.

But remember, if you cash in Bonds within a year of investing, no interest is earned.

To cash in, you can download and complete the cashing in form below and post it to us, or call us and we’ll send you one.

Please note that the form below is only to cash in Bonds invested in or renewed before 20 September 2012. If you’re unsure if this is the correct form for you, please call us .

Download the Children’s Bonus Bonds cashing in form


If your child needs to cash in before the end of the term, you can find out how much the Bond would be worth by calling us for a valuation.


We will write to the person who looks after the investment around 30 days before it matures, to explain the options. We'll include the value of the investment, together with information explaining the choices for renewing or cashing in.

If the person looking after the investment wants to cash in at maturity their instructions must reach us no later than two working days before the investment matures (this is to give us time to process the instructions).


Please let us know if you change any of your details to make sure any communications reach you.

Find out more how to change your details

For Bonds invested in or renewed on or after 20 September 2012

After

This information is for customers who invested in, or renewed into Children’s Bonds on or after 20 September 2012.

If you have any Bonds that you invested in or renewed before 20 September 2012, you can find out more here>


Looking after your child’s Bonds online and by phone

Using our online service is a safe, simple and convenient way to manage your NS&I Children’s Bond. Once you’ve registered and heard from us that your service is up and running, you’ll be able to:

  • apply for Children’s Bonds (when Issues are on sale) and other NS&I accounts and investments
  • keep track of your and your child’s money with NS&I
  • cash in (remember there is a penalty for cashing in early)
  • keep your details up to date including your address, email and nominated bank accounts
  • give us your instructions when your Bond matures
Find out more

Each time we release a new Issue you can invest up to a further £3,000 for each child, regardless of how much you may have invested in previous Issues. The minimum for each investment is £25.

Find out more

Children’s Bonds are owned by the child, but until their 16th birthday each Bond is controlled by the parent or guardian nominated on the application – regardless of who bought the Bond. The person looking after the Bond must have legal parental responsibility for the child.

We will send the investment record, statements and any other correspondence to the parent or guardian named on the application. When the child is 16 they will take responsibility for their own Children’s Bonds, so we’ll then send any correspondence to the child.


To get the full return from the child’s Bond, you will need to keep the money invested for the whole of the 5-year term. The person who looks after the Bond can cash it in at the end of its term with no notice and no penalty.

If the child does need access to the money before the end of the five years, it can be cashed in early, but we will deduct a penalty from the payment. The penalty will be equivalent to 90 days’ interest on the amount you cash in.

If part of a Bond is cashed in at least £25 must remain invested for the Bond to stay open.

If the person looking after the Bond is registered to use our online and phone service, they can cash in by logging in here or calling 0500 007 007 . Otherwise download and complete the cashing in form below.

Please note that the form below is only to cash in Bonds invested in or renewed on or after 20 September 2012. If you’re unsure if this is the correct form for you, please call us .

Download the Children’s Bond cashing in form


If you’ve registered to use our online and phone service, you can get a valuation by logging in here or calling 0500 007 007 . Otherwise just write to us for a valuation.


We will write to the person who looks after the investment around 30 days before it matures, to explain the options. We'll include the value of the investment, together with information explaining the choices for renewing or cashing in.

If the person looking after the investment is registered for our online and phone service they can provide their maturity instructions online or over the phone - we will explain how to do this at the time.

If the person looking after the investment wants to cash in at maturity their instructions must reach us no later than two working days before the investment matures (this is to give us time to process the instructions).


If you’ve registered to use our online and phone service, you can change your details using our online and phone service by logging in here or calling 0500 007 007 .

Or you can let us know the changes by post by writing to us >