The Junior Bond

The Junior Bond is an affordable, tax-efficient way for anyone to save for a child’s future, from as little as £15 per month over a period from 10 to 25 years.

If you've read the details and are happy the Junior Bond is right for you, you can apply online today.

Apply Online

Save over the long term for a child

The Junior Bond is a great choice for grandparents, or anyone else, wanting to save a set amount on behalf of a child. You choose the amount you want to pay and the payment term at outset.

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  • Tax-efficient investment

    The Junior Bond is invested in a special tax-exempt fund although income received by the fund is taxed before we receive it.

  • Tax-free final sum

    The final sum the child receives will be free of Capital Gains Tax and Income Tax (tax advantages depend on individual circumstances. The tax treatment of the Junior Bond may change in the future).

  • Choose how to invest

    We offer two investment options: our Sovereign Fund and our ethical fund. Both aim to achieve long-term growth, but invest differently.

  • A long-term plan

    This is a long-term plan. Save from £15 a month to £25 a month over a fixed period of between 10 and 25 years; whatever suits you best.

  • Save for 10 years or more

    You can select an initial payment term of 10 years or more. So you can choose when the child can access the money, for example on their 18th, 21st or 25th birthday.

Receive up to £25 Boots vouchers when you apply online for a Junior Bond.

Its aims

  • To enable you to invest tax-efficiently for a child.
  • To provide a child with a tax-free lump sum at the end of the chosen payment term.
  • To achieve growth by investing in stocks and shares.

Your commitment

  • To make a fixed, regular annual or monthly payment, which you select at the start.
  • You cannot increase or reduce this amount at any time.
  • To pay the chosen amount for at least 10 years.

The risks

  • Because the money is invested mostly in stocks and shares, its value can go down as well as up. The child may get back less than you have paid in.
  • Your circumstances may change, and this may mean that the Bond needs to be cashed in early. This will increase the possibility that the child will get back less than you have paid in.
  • If the Bond is cashed in early, or you do not keep making payments for at least 10 years, any growth may be taxable.
  • Tax advantages of the Junior Bond depend on your, and the child's, individual circumstances and its tax treatment may change in the future. If the tax treatment changes, the potential growth of the Bond may be reduced.

Eligible for a Junior Bond?

Any adult aged 18 or over can open a Junior Bond for any child aged 15 and under (as long as the child does not already have one or is not using their £25pm or £270 per year allowance to the full).

Great for grandparents

The Junior Bond is a fantastic way for grandparents to save for a grandchild.

Apply online today

  • Apply online

    Start online application

  • Request an information pack

    Request info

  • Call our helpline

    0800 731 7433

    9am-5.30pm weekdays and 9am-12 noon Saturday.
    Calls may be recorded and monitored for training purposes