Premium Bonds

[rain2sunshine]

I've got myself in a bit of a pickle and I don't know what to do.

So my 17yr old has got a substantial amount in Premium Bonds.

She is sensible with money, but doesn't know how much she has invested in Bonds over the years.

I say she is sensible with money....but she's 17yrs old and soon to pass her driving test etc. Being terrified how things change once they're 18yrs old, I wanted to put her Bonds in a 3yr secure ISA or something for when she is 21yrs old at least.

She knows I log in to her Bond Account to buy her Birthday / Christmas bonds from grandparents etc. But the problem is I took it upon myself to request a large amount from her Bonds to invest into a fixed 3yr ISA for her without her knowing. Please don't knock me down, I am 110% trustworthy with my kids money. And I have their best interest at heart.

Although my details are on her Bond account since we didn't change all that when she turned 16yrs old, Premium Binds rang today and want to talk to her. I'm guessing it's to authorise the withdrawal of the large funds. So now I've got to explain this to her about the sum of money.

Has anyone had anything similar, and what did you do. I would have told her about the money once it was secure and locked away.

Can you explain all this to her just as you have here and then she can just back up what you’ve planned and speak to them and give the same instructions? Or do you think she won’t ?

i found it slightly weird how suddenly our DD was in charge of hers too at 16 as didn’t realise. I have just explained to her that she has more than I let her know as it’s to keep safe there until she needs it for something important .

I'm just worried with her soon to pass her driving test she might get carried away with car affordability if she knew about the sum of money. Or maybe her boyfriend would encourage her ideas. I don't have reason to think they would get carried away, but they are 17.

I had hoped to quickly get things done before she turns 18, but this has now caused complications. I could try explaining to her but it risks defeating my good intentions. Maybe I shouldn't have requested the withdrawal of funds then it might have just sat in Bonds without her asking what the balance is? I'm in such a flap over what to do

I think you need to be honest with her and explain you rationale for reinvesting in fixed term bonds. But in reality, it's her
Money to do with what she chooses.

Ultimately the money has still been a gift to her though ? I have no qualms about firmly putting rules on this that it isn’t for spending on a car or anything at the moment.

You need to tell her what you have done. And it’s not your money to move, she would be well within her rights to be annoyed.

She’ll understand, I’m sure. Explain your reasoning and apologise for failing to talk to her about it first.