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.
How long does it take to complete an NS&I transfer?
When you make a bank transfer, the funds will arrive in your account in 2 to 3 banking days. Because NS&I is not a bank, we are unable to accept payments directly into individual NS&I accounts; instead, payments must first pass via our clearing bank.
How long does it take to redeem premium bonds through the mail?
If you don’t mind which bonds NS&I cashes in first, you can answer “no” to this question.
- To a nominated account – You will have the option of having the bonds paid straight into a current account.
The time it takes for NS&I to process a ‘cash in’ form is normally around eight days, plus the time it takes for the money to clear or arrive in the mail.
What is the procedure for receiving my premium bonds in my bank account?
- Premium Bonds holders who are still receiving paper warrants must take measures to ensure that their awards are paid automatically.
- Customers can also choose to have their prize money re-invested into more Premium Bonds, increasing their chances of winning in future drawings.
- Almost three-quarters of Premium Bonds awards (74%) have already been remitted to consumers’ bank accounts or automatically reinvested. Payment by BACS is more cost-effective and ecologically friendly than sending warrants through the mail.
- There are currently over 1.8 million Premium Bonds awards worth over £67 million that have gone unclaimed. Rewards won by new Premium Bonds customers will be paid by BACS, which will reduce the number of prizes that go unclaimed.
Starting with the December 2020 prize draw, NS&I will begin to transfer clients to having Premium Bonds rewards paid directly into their bank accounts, which will be a faster, easier, and more secure method of receiving prizes. By March 2021, the issuing of paper warrants (similar to a check) for the payment of prizes won in monthly Premium Bonds prize draws will be totally phased out.
Customers with Premium Bonds can continue to have any rewards reinvested in further Premium Bonds, up to a maximum holding of £50,000. Customers will be notified of any prize wins through email or text message, as desired.
Premium Bond holders have had the option of having their rewards paid directly into a UK bank account in their name since 2011. Almost three-quarters (74%) of the 3,856,040 rewards were transferred directly into clients’ bank accounts or reinvested into more Premium Bonds in the September 2020 prize draw.
“Premium Bonds awards are paid directly into clients’ bank accounts, which is faster, easier, and more secure. It also means we’ll be able to reduce the amount of Premium Bonds rewards that go unclaimed because we don’t know the winner’s current address. Customers can also have any prize winnings reinvested into new Premium Bonds up to the £50,000 limit in order to boost their chances of winning in future drawings.
“Although there is an understandable attachment to receiving rewards by mail, nearly half a million customers have converted from receiving paper warrants to having their awards paid immediately into their bank accounts or automatically reinvested since March. This adjustment will allow NS&I to manage Premium Bonds prize distribution more cost-effectively and with a lesser environmental impact, which will benefit our consumers.”
Premium Bonds customers must ensure that NS&I has their up-to-date UK bank account data, as well as an email address or UK mobile phone number, so that they can be notified of any prize winnings. Customers are encouraged to do so as soon as possible, as the issuing of paper prize warrants will be phased down starting in December 2020 and will be completely phased out in March 2021. Customers will never be called by NS&I and asked for their bank account information.
Because NS&I is discontinuing the use of prize warrants, some Premium Bonds customers will stop getting them in December 2020, and all customers will stop receiving them in March 2021. Instead, these customers will receive a prize claim letter with instructions on how to arrange for payment of their prize. The prize warrants for the February 2021 Premium Bonds prize draw will be the last ones issued by NS&I.
Customers who do not have access to the internet should phone NS&I at 08085 007 007 to provide their bank account information or to register to manage their savings, including Premium Bonds, with NS&I.
- NS&I is one of the largest savings institutions in the UK, with 25 million customers and a variety of savings and investing options. Because NS&I is backed by HM Treasury, all products provide 100 percent capital security.
- Over 21 million consumers have invested over £88 billion in Premium Bonds.
- The yearly Premium Bonds prize fund rate is 1.40 percent, with a 24,500 to 1 chance of winning any prize. The prize fund rate and the chances of winning are both variable and can vary at any time.
- The NS&I media team has photos of ERNIE 5, prior ERNIEs, and Premium Bonds, including the Premium Bonds app, in high-resolution jpeg format.
- Customers could be notified of any Premium Bonds prize wins by text message, according to NS&I’s announcement in February 2020.
- In February 2020, NS&I announced that parents or guardians of children under the age of 16 who had Premium Bonds purchased for them would be able to have any rewards earned directly deposited into their bank account.
Is it possible to cash premium bonds at the post office?
Premium Bonds are a terrific way to save in a novel way: instead of earning interest, you can win prizes. Premium Bonds, like normal savings, allow you to withdraw funds at any moment. This is how you go about doing it.
Cash in Premium Bonds by post
You’ll need your NS&I number to complete the form. You’ll have to decide how many Premium Bonds you want to cash in (all of them or part of them and how much in each case). If you’re only cashing in a portion of your Premium Bonds, you’ll need to input the serial numbers of those bonds separately. If you don’t care which ones NS&I cashes in first, you can answer “no” to that question.
Choose how to receive the cash from your Premium Bonds (if applying by post)
You have two alternatives for cashing in your Premium Bonds in Section 6 of the aforementioned form:
- To a bank account that has been designated. You’ll need to enter in the details of the current account into which you’d like the bond’s value to be paid directly.
What to do after you’ve cashed in your Premium Bonds
It’s entirely up to you. However, there are a variety of reasons why people opt to cash in their Premium Bonds, including the need to free up funds for a large purchase or to invest in something else. Maybe you want to climb on the property ladder, or maybe you just want to go on a fantastic vacation!
Whatever you decide to do with the money you’ve cashed out of your Premium Bonds, we go over some of the most popular options below and highlight the Finder guides that might help.
- Take out a loan. Have you decided to utilize money from your Premium Bonds to help with a down payment on a home? Take a look at our mortgages section.
- Open a savings account with a set rate. Have you been having a hard time winning anything in the Premium Bonds prize draw? Instead, you might put your money into a fixed-rate bond, which will pay you a guaranteed interest rate.
- Make a stock market investment. If you enjoy watching the stock market, you could be expecting to make a profit by purchasing business stock or investing in a stocks and shares ISA. To learn more, visit our investment section. If you invest, keep in mind that your money is at danger.
- Boost your retirement savings. If you want to put additional money down for retirement, you might add to your pension fund. It’s a complicated topic, so learn more about it in our pensions section.
- It’s yours to spend. Have you set your sights on a dream vacation? If you’ve cashed out your Premium Bonds for that once-in-a-lifetime trip, read our travel money advice to make sure you’re getting the greatest bargain possible on your purchases while you’re away.
You may also discover more about the alternatives to Premium Bonds by reading our guide.
How simple is it to redeem Premium Bonds?
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 happens to winnings from premium Bonds?
Cheques may not arrive until the end of the month through the mail. If you haven’t gotten your check by the end of the month, please contact us and we’ll send you one.
Premium Bonds reward cheques expire after three months for security reasons. Don’t worry if your check has expired; simply ask us for a replacement.
To avoid issues like these, you can have your wins sent directly to your bank account or reinvested into additional Bonds – both of these options are quick, easy, safe, and environmentally friendly ways to get your money.
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 there anything negative about 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 happens to premium bonds when someone dies?
Any rewards won will be paid by warrant (like a cheque) to the person entitled to the money when we’ve processed the claim once we’ve received notification of the customer’s death. Any prizes the customer wins before then will be held and sent once the claim is finalized. Then, after each prize draw, we’ll send any future prizes earned by warrant to the person 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 do Premium Bonds go unclaimed?
Claims have no time limit, so you can go back as far as you like. Here’s how to get your hands on any prizes that haven’t been claimed yet: To begin your claim, call 08085 007 007 if you are a registered user of NS&I’s online and phone services.