National Savings & Investments closes the Children’s Bond
When National Savings & Investments (NS&I) announced the launch of their new Junior ISA, they said that the Children’s Bond would be closed to new sales from September 2017, this is disapointiung, but with the JISA and the abilty to fund Pensions for children I can only asusme the demand was not there.
NS&I have now confirmed that the latest issue (36), paying 2.00% (tax-fee), fixed for 5 years, was withdrawn from 24 September. NS&I regard the JISA as an effective alternative, even though it is a variable rate product (currently also paying 2%), rather than fixed rate.
When existing Children’s Bonds reach maturity, there will be no roll over to a new Bond available. Instead NS&I says it “will contact customers about a month before each Bond matures to let them know what the options are at that time”.
With the cost of university education increasing, the need to put money aside for your childrens future is even more important. There are a number of options which include deposit savings, a JISA and a General Investment Account so you need to do your research to understand which is best for you because all accounts have their pros and cons.
I have a guide which compares the different options, so please send me a message if you’d like a copy.