www.InvestmentGuide.co.uk
www.InvestmentGuide.co.ukNATIONAL SAVINGS
A lump sum investment made for a child by a parent, grandparent or friend which accumulates interest at a fixed tax exempt rate and has a bonus after 5 years. The money can be held in the bond until the child is 21 under extension terms which are announced from time to time. The main snag about this investment is that the child has complete control of the money invested from the age of 16 onward.
Who can invest Anyone aged over 16 for a child under 16.
How worthwhile Suitable for higher rate taxpayer donors. Compare with Bank or Building Society Children's Account. Compare with Child Trust Fund if you have a baby.
Minimum £25. And then in £25 units.
Maximum £3,000 for the current issue which can be held in addition to a previous issues for the same child.
Suitable Lump sums. Regular savings.
Money back About 2 weeks. You lose the bonus if you cash early. If cashed in first year, no interest paid. Notice of withdrawal no longer required. Can be partially cashed in £25 units.
Interest To check the rates and bonus rate for the current and previous issues, click here.
Interest paid Accumulated to increase its value at the end of each year.
Tax Interest and bonus are tax free and need not be entered on a tax return.
Fees to pay None.
Passbook None. Certificate provided.
Children Designed as a gift to the child. Trust holdings not allowed.
Risk None.
How to invest Ask for an application form. Pay over the counter at a post office or by post to National Savings.
Where from Get an application form on-line or from a post office or phone 0845 964 5000.
Last updated 22
June 2008.