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Children's Bonds

Do you have a Bond that matures soon?

Here’s what you need to do next

Children’s Bonds are no longer on general sale. The current lssue is only available to customers aged under 16 with maturing Bonds.

What you need to decide

Children aged under 16

Around a month before the end of the 5-year term, we’ll write to the parent or guardian who looks after the Bond to let them know their options.

These will normally include:

  • renewing the Bond for another 5-year term
  • cashing in the Bond

Where we offer the option to renew a Bond, you won’t need to do anything – the Bond will automatically renew unless you tell us otherwise.

Please make sure this is what you want. If you change your mind after the Bond has renewed and want to cash it in before the end of the new term, we’ll charge a penalty equal to 90 days’ interest on the amount cashed in.

Remember that the interest rate for renewing the Bond could be higher or lower than the rate the Bond is currently earning.

Children aged 16 or over

Around a month before the end of the 5-year term, we’ll write directly to the child to let them know their options.

A Children’s Bond can’t be renewed after the child reaches 16, but the child will be able to:

  • switch to another NS&I account or investment
  • cash in their Bond

The information on this page is only relevant if you have a Bond maturing soon.

Not heard from us?

Call us if you have any questions or you haven’t heard from us 30 days before the end of your 5-year term. And don’t forget to tell us if you change your address or contact details.

Call us

Renewing your Bond

Renewing your Bond

Children’s Bonds are no longer on general sale. The current lssue is only available to customers aged under 16 with maturing Bonds. The parent or guardian who looks after the Bond can renew up to the total value of the maturing Bond, including all the interest earned. Or they can cash in some of the Bond and renew the balance. They won’t be able to add any extra money to the Bond.

Interest rate

This is the rate currently available for customers eligible to renew a mature Bond:

Issue

Term

Date rate applied from

Interest rate

Issue 37

5-year

24 September 2017

2.00% tax-free/AER

Definitions

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

AER (Annual Equivalent Rate) 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 the AER are the same.

Cashing in early

Cashing in early

Children’s Bonds are designed to be held for the whole of the 5-year term. The person who looks after the Bond can cash in at the end of a term with no penalty.

You can also cash in before that, but we will deduct a penalty from the payment equivalent to 90 days’ interest on the amount cashed in.

When you cash in part of a Bond, at least £25 must remain in the Bond to keep it open.

Bear in mind that if you cash in all of a Bond within 90 days of renewing, you will get back less than the renewal value.

  • How to cash in

    Registered for our online and phone service? Log in or call us at any time with your NS&I number and password to hand.

    Log in

    Call us

    Or complete a cashing in form and send it to us.

    How long will it take?

    When you cash in online or by phone, we’ll send your payment within three working days of receiving your instructions.

    When you do this by post, we’ll send your payment within five working days.