Premium bonds - ANOTHER Q ADDED

[AP]

I understand they are a lottery of some sort but what the heck are they, what benefit are they?

MIL bought them for LO's first birthday and wants to buy another significant amount for her 2nd. DH suggested not to bother, and get LO a toy or something to help her development. But she's insisting on these premium bonds. Is it a done thing, giving babies gifts like this?!

 

[ald]

They are like a savings account but without gaining any interest but instead having a chance to win one of the many cash prizes each month. The more pb you have the higher the chance of winning. The money can be withdrawn by filling in a form at the post office but you can only have them in your name when your 16, until then an adult holds them on your behalf!

People tend to use them as a savings account for lo uni etc. You can have up to £30000 per person I think!

I use them now instead of ISA accounts because the return on my ISA was crap so I would rather be in with a chance of winning more and if I don't the only thing I have lost is the crap interest from the ISA, I have always won more though but it is a risk I may not!

 

[AP]

So like, the money remains in? Its not spent? So LO would always have a total of £200 saved for when shes older?

 

[mandy81]

The money stays in there until you want to take it out hun (or until your LO is 18 if that the way your MIL has done it )
but it also means that you have a chance of winning as well

OH has them and we are always getting cheques for £50, £100, £250
it's a great way to save and win money all at the same time

Ohh the higest amount you can win is 1 million pounds xx

 

[AP]

And because shes gifted them, she has no control over it, she can only add to it?

 

[Eternal]

I think they are really good personally, esp with how crap interest rates are right now.

You wont lose any of the money, so if you have just £100 or £30,000 it will always be there, its fairly easy to access in comparison to other things, and you have a chance to win significant money on them.

Saying that i only have a small investment from childhood of a few hundard and very won a thing, my grandad had 30k invested and wins like once a month, its only been small amounts like £50 - £100 a time but still far more than he would get on his return anywhere else.

There is a chance to win major money too!

Seems like a sensible think for your mum to do really!

 

[special_kala]

Wss

My best friends parents have them and ladt year they won £2000

 

[Midnight_Fairy]

My parents have them and some of mine are still in there. We have them for our LO's to. We have got quite a bit sometimes from it

 

[AP]

Thats cool then! Thanks you lot! Xxxx

 

[amie-leigh]

i had considered taking some out for morgan but never really looked into it properly but i think i might now seems like a good way to save and nothing to loose but the chance to gain x

 

[tallybee]

Yeah they're good actually, the more money you have in there the more chances you get of winning. I agree that with interest rate as pants as they are atm PBs are a good idea - I am sure I had some given to me as a baby but dunno what happened to them... I'm gonna look into getting some for the kids, they've got savings accounts that pay virtually sweet FA at the mo

 

[xkirstyx]

i have them aswell hun but never won anything. my mum told me they can be cashed aswell x

 

[AP]

Right. I really need to know this cause im petrified of sonething dodgy happening.

MIL has NO access to the funds right? Not even the stuff shes put in?

DH is a signatory.

She also wants him to sign a form to Alexs nane change when we got married? Shouldnt that have come to us?

 

[xkirstyx]

if the bonds are in LO name she cant touch them xxxxx

 

[AP]

Thanks Kirsty. Can't trust her lol

 

[xkirstyx]

haha! nah she cant get near it hun xxx