National Savings and Investments

Investment accounts: A convenient passbook savings account with attractive interest rates. It offers tiered rates of interest, so the more you invest the better the rate you earn, and the interest is paid gross.

Children Bonus Bond: these are five year fixed rate bonds which can be taken out for children up to the age of 16. They can be bought in £25 units up to a maximum of £1,000. Any adult can buy these for children as a gift (link to tax section). Money can be withdrawn early but no interest is payable if a bond is encashed within a year, and other early withdrawals do not qualify for the final bonus.

Premium Bonds: these can be purchased for children only by their parents, grandparents or guardians. The minimum purchase is £100 and the maximum is £30,000. Prizes are tax-free and range from the monthly £1 million jackpot down to £50. Money can be withdrawn with eight days notice.