Interest to be Paid on Baby Bonds
Interest will be paid on backdated payments under the new baby bonds scheme
15th December 2004
Prime Minister Tony Blair has announced that interest will be paid on backdated baby bonds.
Under the scheme, any baby born after 1st Sept 2002 will be eligible for a £250 voucher from the government, to be invested in a special 'baby bond' savings account. Families claiming tax credit could see this figure rise to £500.
A further payment will be made at the age of seven.
The vouchers are due to be issued early next year, and Mr Blair confirmed today that backdated payments will be paid with interest, to compensate for the time the bond has not been earning interest in an account.
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