NS&I Children’s Bonds
What is the interest rate?
5-year term, Issue 35
We calculate the interest daily and add it to the Bond on each anniversary of investment.
Can NS&I change the interest rate?
You’ll receive the rate on offer at the time you invest and that rate will be fixed for the 5-year term. We can change the
fixed rate on offer at any time. Each time we change the rate on offer we release a new Issue of Bonds.
What would the estimated balance be after 12 months based on a £1,000 deposit?
A £1,000 deposit would be worth £1,131.41 at the end of the 5-year term.
This is an illustration only, so it doesn’t take into account your individual circumstances. It assumes that you don’t make
any withdrawals during the term.
How do I open and manage my account?
Our Children’s Bonds are for customers aged 16 or over to buy for their own children, grandchildren or great grandchildren
under 16. The Bonds will be in the child’s name but their parent or guardian will need to look after the investment until
the child is 16.
If you’re the child’s parent or guardian, you can:
apply for, and manage, Bonds online, by phone or by post
invest with at least £25, paid by debit card or personal cheque drawn on a UK bank account in your name
invest up to a total of £3,000 per Issue for each child
Grandparents and great grandparents can also apply for Bonds, but only by post.
If you want to switch to a Children’s Bond from another NS&I account or investment:
Download an application form
Can I withdraw money?
Yes, before the end of the term you can cash in all or part of the Bond online, by phone or by post with no notice. We will
deduct a penalty equal to 90 days’ interest on the amount you cash in. You need to keep a balance of at least £25 to keep
the Bond open.
At the end of the term you can cash in with no penalty. We’ll contact you (or the child if they are over 16 at the time)
about a month before to explain the options available at that time.
The interest earned is tax-free, both for the child and the parent or guardian, so it won’t count towards your Personal
Find out more about tax and savings
We’ll send you a statement shortly after each anniversary of investment, showing the interest earned and any withdrawals
you might have made.
means the interest is exempt from UK Income Tax and Capital Gains Tax.
(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.