Anyone wanting to set aside money for children this coming year might want to be reminded that the minimum investment in Premium Bonds will be lowered to £25 in 2019.
So a relative buying a Premium Bond on behalf of a child will no longer have to stretch to a minimum of £100. This change was announced in the Budget and should take effect by the end of March 2019.
Customers will also be able to set up a standing order of £25 on a regular basis, down from the current £50 minimum imposed.
However, there’s no change for the maximum amount you can save in Premium Bonds – this remains at £50,000.
Premium Bonds are administered by the Government-backed National Savings & Investments and pay out prizes of between £25 and £1 million each month.
Ian Ackerley, NS&I chief executive, said: “Premium Bonds have helped tens of millions of people to save since their launch in 1956 and these new improvements will make Premium Bonds more accessible. Our customers are increasingly dealing with NS&I online, and the development of the app will give customers the option to help them manage their money with us in a way that suits them.
“Customer feedback is always an important part of our decision-making, and we found that the current £100 minimum purchase was too much and recognised that people other than parents or grandparents wanted to gift Premium Bonds to children.
“By lowering the minimum investment and making gifting for children accessible to all adults, we are extending the opportunity for more people to save and trying to encourage a savings habit, especially among younger people. This supports a strong savings culture for families in a product that has spanned the generations, and for those who want to save little and often.”
Premium Bonds must be held for a full calendar month before they go into the draw.