Child Taxation: 5. National Savings Children's Bond

Published / Last Updated on 02/08/2021

The National Savings Children’s Bond ended on 26th April 2018 having replaced the Children’s Bonus Bond on 20th September 2012.  They were available to parents, guardians, grandparents and great-grandparents.

The maximum that could be invested for each issue was £3,000.

All Children’s Bonus Bonds will have now matured but some Children’s Bonds will still be in force until 2023.

Children’s Bonus Bond:

The child took control of the bond at age 16 with maturity at age 21.  The bonus bond had a guaranteed rate of interest for 5 years and grew tax free.  At age 21 a final, tax free bonus was added, hence being called the Children’s Bonus Bond.

Children’s Bond:

Replacing the Children’s Bonus Bond from 20th September 2012 with new applications stopping on 26th April 2018.  The clue is in the title i.e.  the Children’s Bond rather than the Children’s Bonus Bond as the final, tax free bonus was removed for these issues and replaced by a higher guaranteed rate of interest.  The Children’s Bond can no longer be held after age 21 and matures on the first 5 year anniversary after age 16 i.e.  age 21.  At age 16, the Child has full control of the bond, even if they decide to cash it is early.  If they cash in early, they will lose some interest.  You can partially cash-in provided at minimum of £25 is left in the bond.

We are fast approaching the point when the Children’s Bond will disappear.  If the last Children’s bond was taken out on 25th April 2018 for a 16 year old whose birthday was 25th April, then the bond will mature on 25th April 2023.

Children’s Bonds at Maturity:

Age Under 16:  Options for Parents/Grandparents/Great-Grandparents/Guardians

  • move the funds into an NS&I Junior ISA.  The child will need to not have an existing Junior ISA or Child Trust Fund with another provider.
  • move the funds to another NS&I account (you’ll have the choice of Premium Bonds or Investment Account)
  • cash it in

Age 16-17:  Options for Child (now in control)

  • move the funds into an NS&I Junior ISA.  The child will need to not have an existing Junior ISA or Child Trust Fund with another provider.
  • move the funds to another NS&I account (you’ll have the choice of Premium Bonds or Investment Account)
  • cash it in

Age over 18:  Options for the Child now turned Adult

  • move the funds to another NS&I account
  • cash it in

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