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Interest rates

Tax-free / fixed

Minimum investment £25

		Issue		Tax-free rate pa/AER
		Issue 34 Guaranteed compound rate over 5 years, inc. 5th anniversary bonus		2.50%

No tax liability for parents or children.

To find out how much the child's Bond would be worth after 5 years, go to calculator.

For a summary of the rates for all our products, see interest rates.

Year by year rates

Children's Bonus Bonds are designed to be held for 5 years to earn the guaranteed rates shown above.

Issue 34
For the first 5 years each £25 unit earns 1.85% pa compound. On the 5th anniversary of purchase it earns a bonus of £0.89 (3.56% of purchase price).

No interest is earned on Bonds repaid in the first year, see terms and conditions.

Definitions

Tax-free means the interest is exempt from UK Income Tax and Capital Gains Tax.

AER (Annual Equivalent Rate) is a notional rate that illustrates what the annual rate of interest would be if the interest was compounded each time it was paid. Where interest is paid annually, the quoted rate and the AER are the same.