Not a member yet? You don’t need to create an online profile to withdraw money from your or your child’s Premium Bonds. All you have to do is complete a little online form. Make sure you have access to your account information.
Please note that in order to withdraw or close the account, you must be the person responsible for the child’s Premium Bonds.
You can withdraw money from Premium Bonds while ensuring that particular Bonds remain in the draw by filling out a form online.
A cashing in form can also be downloaded, printed, and completed. Then send us your completed form along with the Bond certificates that need to be cashed in (if you have them).
What is the time frame for redeeming premium bonds?
What is the time frame for redeeming Premium Bonds? Unless you have chosen to cash in after the next draw, it can take up to three banking days for the money to reach your account, according to NS&I.
Is it possible for me to cash in my premium bonds at the post office?
After July, savers will no longer be able to purchase premium bonds in Post Office offices, according to National Savings & Investments.
Since 1956, the bonds have been sold over the counter, allowing savers to deposit money in a government-backed account in exchange for a chance to win up to £1 million every month rather than receiving interest.
The present contract with the Post Office, however, will not be renewed when it expires on July 31, 2015, due to shifting consumer demand and cost-cutting efforts, according to NS&I.
After that date, bonds can only be purchased directly from the government’s savings provider, via its website, phone, or mail, or by a regular standing order.
One out of every five premium bond sales takes place in a Post Office branch. Over the counter transactions accounted for 750,000 in 2014-15, while direct transactions accounted for 3.2 million. In the same time period, £3.9 billion in bonds were sold in post offices, accounting for a third of all sales by value.
Customers who have recently purchased premium bonds from a post office would be written to and notified of the cessation of over-the-counter sales, according to NS&I’s chief executive, Jane Platt.
She stated, ” “As our partnership with the Post Office comes to an end on July 31st, I’d want to express my gratitude for their support and service to our customers over the years, and I wish them continued success.
“The majority of our clients already purchase premium bonds through direct channels, so NS&I’s move to 100 percent direct sales is a natural next step. Given that these clients already manage and repay their premium bonds directly with us, it should be simple and natural for them.”
Customers have been unable to cash in bonds or make administrative adjustments at the post office since 2013, and have had to deal directly with NS&I for everything but the initial purchase, since 2013.
Despite revisions to premium bonds that cut the smallest reward paid out in half to £25, the savings lottery has remained popular with investors, with over 20 million individuals owning them. The maximum amount that can be stored in bonds has just been increased by £10,000 to £50,000 per person.
The conclusion of the NS&I contract, according to the National Federation of Subpostmasters, demonstrated the Post Office’s issues and the necessity to modernize.
It stated in a statement: “This is very upsetting news, especially for our elderly and more vulnerable clients who rely on subpostmasters for face-to-face assistance with these types of transactions.
“It’s a shame for Post Offices as well, but it’s not surprising. NS&I has made their position clear in recent years, and it is consistent with the government’s larger reluctance to support the Post Office in delivering front-line public services.”
How can I cash in my premium bonds through the internet?
- Go to your account dashboard and select ‘Cash in’ or ‘Take money out’ for the account you want to close.
- Select the account you want to close if you have more than one of the same kind.
- Choose ‘Cash in’ or ‘Take money out’ after entering the full balance in the amount box.
Not a member yet? You can withdraw your money and end your account for certain of our products by filling out a brief online form without having to create an online profile. Make sure you have your account information handy.
Please note that in order to withdraw and close the account, you must be the person responsible for the child’s Premium Bonds.
Is it possible to cash in bonds at any bank?
The best place to start redeeming your savings bond is the same place where you have a checking account. Customers who have had a checking or savings account with Bank of America for at least six months can quickly cash in their savings bonds. According to the Treasury Department, over 95% of these bonds are redeemed at banks and credit unions.
If you have trouble cashing it in at your bank, you can redeem it directly through the Treasury Department by downloading form 1522, having your signature certified, and submitting your unsigned bonds to:
Are there any disadvantages to Premium Bonds?
Since 1957, National Savings and Investments (NS&I) has marketed Premium Bonds. They are a risk-free option to save because NS&I is supported by HM Treasury and is part of the government.
Premium Bonds do not pay interest, but they do have a monthly prize draw with prizes ranging from £25 to £1 million.
Each bond costs £1 and includes a unique reference number that is used to enter the draw. That implies that for every pound you invest, you may be eligible to win a prize once a month (though it is highly unlikely).
Limitations
Premium Bonds are only available to those who are 16 years old or older. They can, however, be purchased on behalf of children, grandchildren, and great grandchildren and kept by an adult until the child reaches the age of sixteen.
Popularity
In 2008, premium bonds were a big issue. People were looking for a safer way to save during the financial crunch, and Premium Bonds, which are backed by the government, cannot lose their value. People were also drawn to the product because of the increased chance of winning more money.
There are presently 74 billion Premium Bonds in circulation, with approximately three million winning a prize each month.
Potential returns
Prizes range from £25 to £1 million, with lower-value awards being granted more frequently than higher-value prizes.
It’s vital to keep in mind that there’s no assurance that you’ll win anything. The monthly prize pool determines the “average rate of return,” which is now 1.4 percent.
It’s not as simple as assuming that if you buy Premium Bonds, you’ll get a 1.4 percent return. There are several factors that go into determining your exact chances of receiving prize money in that amount, but we estimate that you’ll need to invest roughly £20,000 in bonds to get close to the average return.
This calculator can be used to determine your chances of winning and potential profits.
Advantages and Disadvantages
Is it worthwhile to invest in Premium Bonds? It is entirely up to you to make that decision. Before making any decisions, it’s a good idea to consider all of the possibilities:
You will not see any rewards on your investments if your Bonds are not picked in the monthly prize draw.
Everyone enjoys the prospect of winning a large sum of money! The thrill of the prospect of winning £25 to £1 million for each Bond held is enough to entice some investors.
While the mathematics required to determine your chances of winning are complex, it is currently believed that the possibility of winning any prize is 1 in 24,500 for each individual Bond held.
Premium Bonds are backed by the government, hence there are no risks involved. In the worst-case situation, the bonds purchased are never selected as a reward, and the account balance remains unchanged.
Though the numerical value of your savings cannot be reduced unless you remove money, the real-term value can. Because the cost of living is rising, a stable investment value that does not rise will lose purchasing power over time.
Savings are always tax-free, which is one of the key benefits of bonds: higher-rate and even basic-rate taxpayers can invest substantial sums with no tax consequences.
Since the Personal Savings Allowance was introduced in 2016, most savers have seen no tax liability on their returns. That means savers can invest in vehicles that provide higher returns, and the lack of tax is no longer a distinguishing or compelling feature.
Premium Bonds are backed by the government’s promise to buy them back at the same price you paid for them. That means you can take your money out whenever you want and not worry about being penalized.
After the bonds have been held for a full prize cycle, they are entered into their first reward draw. This implies that Bonds purchased in March will be retained until the prize draw in May. Borrowing from your Premium Bonds could result in you missing out on a successful month.
What is the procedure for cashing in my deceased father’s Premium Bonds?
They can, however, stay in the monthly Premium Bonds draws for up to a year after the client has passed away.
After the 12-month term has passed, the face value of the Premium Bonds, as well as any prizes won during that time, will be reimbursed to the dead customer’s estate.
To retain the Bonds in the draw, the person in charge of the deceased customer’s money should indicate this on the death claims form.
Any Premium Bonds awards won will be paid via prize cheque to the person entitled to the money – the estate’s executor – after the prize draw.
Any unclaimed awards will be held until the death claim is processed, after which they will be distributed.
Following the completion of the death claim, we will send any future prizes earned by check to the individual who is entitled to the money.
We are unable to award these prizes online or to consolidate and pay them at the end of the year.
How long can Premium Bonds be kept after death?
Bonds from Premium Bonds will be kept in each prize draw for up to 12 months after the customer’s death. You must send the Bonds to us, along with the completed claim form, to keep the Bonds invested.
Do old Premium Bonds ever come out on top?
Is it still possible to use my old Premium Bonds? Yes. Your Bonds are still valid and will be included into our monthly prize draws as long as you haven’t cashed them in.
Is it possible for a parent to cash in a child’s Premium Bonds?
Buying NS&I Premium Bonds for a youngster is a fantastic idea because it’s a gift that keeps on giving (possibly).
Premium Bonds can be purchased on behalf of a kid by anybody over the age of 16, thus aunts, uncles, and even family acquaintances can participate.
Furthermore, NS&I’s decision in 2019 to reduce the minimum investment amount from £100 to £25 makes them a considerably more practical, or inexpensive, gift.
Instead, how about purchasing bonds for yourself? The following are the simplest methods for purchasing Premium Bonds.
How to buy Premium Bonds for your child
Parents and legal guardians can apply online, over the phone, or by mail to purchase Premium Bonds as a gift for their children.
Whether you’re buying for the first time or adding to your collection of Premium Bonds, you’ll need to be registered with NS&I.
As previously stated, you must invest at least £25 in Premium Bonds, with each £1 producing one unique bond number.
Every number has an equal chance of winning a prize, so buying more increases your chances of winning.
Until your child turns 16, you will receive confirmation of transactions, money for bonds cashed in, and rewards won.
Do you want to know whether you’ve won anything? The most recent results can be seen in this article.
Buying Premium Bonds for someone else’s child
If you want to spoil your grandchild, niece, nephew, or even a family friend’s child, you can apply online or by mail for an electronic or paper gift card to give to the child.
Your investment will be acknowledged, but only the chosen parent or guardian will be able to manage and cash in the bonds.
Before purchasing Premium Bonds for someone else’s child, there are a few things to consider.
Of course, you’ll want to make sure the parent or guardian is okay with you sending over their information and that they’re happy to look after the bonds.
These facts include the child’s and parent’s or guardian’s dates of birth and addresses, as well as the child’s Premium Bonds holder’s number (if they have one).
Everyone on the application will have their identity and address checked by NS&I, therefore there’s a risk that documentation will be required.
To avoid any unpleasant shocks, inform the parent or guardian that NS&I may contact them to request documentation to establish their identity.
Premium Bonds are detailed in detail, including how to purchase them, how to cash them in, when winners are revealed, and more.
How long does the process take?
If you’re buying the bonds as a present for someone special, you’ll need to prepare ahead and apply ahead of time.
NS&I hopes to open new accounts in seven to ten working days, but because everyone’s name and address on the application form must be validated, it will most likely take longer.
What happens if the child wins?
If the child outperforms the odds and wins a prize, the parent or guardian will have to decide what to do with it.
There’s no need to be concerned about tax implications. While a child cannot earn more than £100 in interest per year from savings, this does not apply to Premium Bonds winnings because they are rewards.
Finally, make sure the child’s information is up to date: there are millions of pounds in unclaimed awards held by bondholders under the age of 16.
How can I make a bond claim?
Complete a Claim for Lost, Stolen, or Destroyed United States Savings Bonds to register a claim for a savings bond that has been lost, stolen, or destroyed (FS Form 1048). Please sign the form in the presence of a certifying officer who is authorized to do so (available at a bank, trust company, or credit union).