Premium Bonds have long been a popular present for relatives wanting to gift a savings habit at Christmas.
But a poll today reveals just as many of us are thinking of buying cryptocurrency as a gift this year.
The survey, by investment firm AJ Bell, revealed one in 50 of us plans to buy either NS&I Premium Bonds or cryptocurrencies such as Bitcoin.
Gamble: Cryptocurrencies such as Bitcoin are so risky that the value of a gift given on Christmas Day could be worth considerably less by the time the Queen’s Speech is broadcast
Yet the latter are so risky a gift given on Christmas Morning could be worth far less when the Queen’s Speech airs.
Premium Bonds pay prizes at an equivalent interest rate of 1 per cent. Each bond gives a saver a shot at a £1 million prize every month, but winning is not guaranteed.
Bitcoin has increased in value since last year, turning £30 into £56 today. Yet earlier this month it fell by around 20 per cent after peaking in November.
Laura Suter, from AJ Bell, says: ‘It’s a clash of the old and the new. Both involve a bit of a gamble, as the value of Bitcoin has been volatile and Premium Bond prizes aren’t guaranteed.
‘But Premium Bonds are guaranteed by the Government and you can’t lose your money. It’s the safest way of saving. Cryptocurrency is not guaranteed, and the value could fall to zero, meaning you lose it all.’
Kevin Brown, savings expert at mutual Scottish Friendly, adds: ‘The number of people gifting cryptocurrency may seem low, but in terms of how many people are invested in crypto this is the tip of the iceberg.’
Cash remains the most popular choice, with more than half gifting it this year, according to the survey.
Yet a growing number of parents are sending links to their children’s accounts via text, WhatsApp and email so relatives can pay in directly.
Illustrator Cathy Dafforn recently shared a link to her baby son’s tax-free Junior Isa (Jisa) with relatives. Cathy, 37, says: ‘Connor is only 14 months and has a room full of toys already.
When my sister asked on the family WhatsApp group whether to buy him a present or send some money, I shared the link to his Jisa.’
Those who click on the link to the AJ Bell Jisa then enter Connor’s name and date of birth, plus their own details including name, address, email and card details to make the payment. Cathy’s father was the first to add funds for Connor’s first birthday.
She says: ‘It is as easy as online shopping, and relatives can pay in without asking for any details. As it’s a stocks-and-shares Jisa, the money should grow and when he is 18 he can do something useful with it. ’
Dani Kumrou, 35, has also sent links to her 11-year-old daughter’s GoHenry account via text to family. The pocket money app allows parents to create a ‘giftlink’ that can be shared with friends and family. The link takes people to a page to make a secure payment.
Dani, who runs her own health and wellbeing company, says her relatives do everything on their phones, so no one had issues with the app.
She says: ‘I think the way we view money is changing. When I was younger it was all about notes, but children are growing up with apps. Ellie-Rose is at an age where she’s difficult to buy for. Sending money means she can buy what she likes.’
Premium Bonds pay out prizes at an equivalent interest rate of 1%. Each bond gives a saver a shot at winning a £1m prize every month
If you must send cash, make sure it is packed securely and can’t be seen from outside the envelope. Coins are best avoided.
Royal Mail suggests sending by Special Delivery Guaranteed which offers compensation for loss.
A 100 g letter guaranteed by 1pm the next day costs £6.85, or £6.75 online, and covers up to £500.
You could send a cheque, but with bank branches closing, it may also be hard to pay them into accounts.
Some banks will let you take a photo of a cheque through apps and deposit it that way.
You can pay directly into someone’s account but you will need their account number and sort code.
A deposit can be made into a child’s Jisa by phone or via the provider’s website if you have their account number, name and date of birth.
If you paid £20 into your baby’s stocks-and-shares Jisa every month from when they were born they would have £6,401 at 18, based on 4 per cent growth.
Premium Bonds are entered into a monthly draw with around 3 million prizes. For each £1 bond, the odds of winning anything are 34,500 to one.
Anyone can buy bonds for under-16s but you must let their parent or guardian know, as NS&I will contact them for proof of ID and address.
Apply online at NS&I, by post, or call 0808 500 7007. The minimum investment is £25.
Compare the best DIY investing platforms and stocks & shares Isa
Investing online is simple, cheap and can be done from your computer, tablet or phone at a time and place that suits you.
When it comes to choosing a DIY investing platform, stocks & shares Isa or a general investing account, the range of options might seem overwhelming.
Every provider has a slightly different offering, charging more or less for trading or holding shares and giving access to a different range of stocks, funds and investment trusts.
When weighing up the right one for you, it’s important to to look at the service that it offers, along with administration charges and dealing fees, plus any other extra costs.
To help you compare investment accounts, we’ve crunched the facts and pulled together a comprehensive guide to choosing the best and cheapest investing account for you.
We highlight the main players in the table below but would advise doing your own research and considering the points in our full guide linked here.
>> This is Money’s full guide to the best investing platforms and Isas
| Admin charge | Charges notes | Fund dealing | Standard share, trust, ETF dealing | Regular investing | Dividend reinvestment | ||
|---|---|---|---|---|---|---|---|
| AJ Bell YouInvest | 0.25% | Max £3.50 per month for shares, trusts, ETFs. | £1.50 | £9.95 | £1.50 | 1% (Min £1.50, max £9.95) | More details |
| Bestinvest | 0.40% | Free | £7.50 | n/a | n/a | More details | |
| Charles Stanley Direct | 0.35% | No platform fee on shares if a trade in that month and annual max of £240 | Free | £11.50 | n/a | n/a | More details |
| Fidelity | 0.35% on funds | £45 fee up to £7,500. Max £45 per year for shares, trusts, ETFs | Free | £10 | Free funds £1.50 shares, trusts ETFs | £1.50 | More details |
| Hargreaves Lansdown | 0.45% | Capped at £45 for shares, trusts, ETFs | Free | £11.95 | £1.50 | 1% (£1 min, £10 max) | More details |
| Interactive Investor | £119.88 as £9.99 per month | £7.99 per month back in trading credit | £7.99 | £7.99 | Free | £0.99 | More details |
| iWeb | £100 one-off | £5 | £5 | n/a | 2%, max £5 | More details | |
| Freetrade | Free for standard account £3 month for Isa | Freetrade Plus with more investments is £9.99/month inc. Isa fee | No funds | Free | n/a | n/a | More details |
| Vanguard | 0.15% | Only Vanguard funds | Free | Free only Vanguard ETFs | Free | n/a | More details |
| (Source: ThisisMoney.co.uk July 2021. Admin charges quoted annually, may be monthly or quarterly) | |||||||
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