Aunts can now give premium bonds as gifts

FOR the first time aunts, uncles, godparents and even family friends will be able to buy premiums bonds for children from next March.

The Government-run National Savings & Investments (NS&I), which sells the bonds, is also cutting the minimum cost of a single bond to £25.

It says the lower limit will encourage a savings habit, especially for youngsters.

Ian Ackerley, NS&I chief executive, said: ‘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.’

Previously only grandparents and parents could gift them to a child.

Premium bonds give savers the chance to win tax-free prizes every month ranging from £25 to £1million.

About 770,000 children hold £1.1billion in premium bonds to date.

Ten have won the £1million monthly jackpot so far.