NS&I issues warning to grandparents and relatives buying Premium Bonds for a child

NS&I issued the alert on its website, explaining this is important as the government-backed savings provider will need to contact them.

NS&I said: “If you’re not the parent/guardian of the child, you’ll need to let them know before buying Premium Bonds as we’ll contact them directly for things like providing evidence of identity and address.”

Before applying for Premium Bonds for someone else’s child, NS&I asks people to ensure the parent or guardian is happy to look after the investment for the child.

They must also agree to the person buying the Premium Bonds gift giving NS&I their personal details.

NS&I will check the identity and address of each person named on the application, and they may need to see documents to prove this.

Therefore, NS&I asks the buyer to let the parent or guardian know that they may be in touch to ask for evidence of identity documents.

To buy Premium Bonds for someone else's child under 16, a person will need:

• Their address and date of birth
• The child’s address and date of birth
• The parent/guardian’s address and date of birth

It's only possible to have a maximum of £50,000 in Premium Bonds.

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People buying Premium Bonds for someone else's child can do this either online or by post.

If a person buys Premium Bonds for their own child, they can do this online, by post or via telephone.

The same child can have more than one nominated parent or guardian managing Premium Bonds for them, but the child can't have a holding of more than £50,000 in total.

The odds of winning in the Premium Bonds monthly prize draw stand at 21,000 to one for every £1 Bond in the draw.