What is the procedure for redeeming old 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).
Are Premium Bonds profitable?
- Have a large sum of money to set aside (the more bonds you have, the bigger your chance of winning a prize)
- Interest on savings is taxed (and have already used up your annual cash ISA allowance)
- The concept of a prize draw appeals to me (you could win big, but you also may not win anything)
It all boils down to your personality. Do you get a nice feeling from the element of surprise? What if you didn’t win anything? How would you feel?
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.
How far back can Premium Bonds be claimed?
When someone wins a Premium Bonds prize, we notify them. However, the good news may not always arrive. This could be because you relocated and didn’t tell us, you altered part of your personal information, or our letter got lost in the mail.
Simply log in to examine your reward history, or use our prize checker to discover if you have any unclaimed prizes.
What happens to Premium Bonds after 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.
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.
How can I verify Premium Bonds that are several years old?
While many NS&I Premium Bond holders check every month to see if they’ve won, others take a more carefree approach to bond ownership.
As a result, there are over 2.1 million Premium Bond rewards worth around £75 million that are just waiting to be collected.
So, if you haven’t done so already, double-check your numbers to see whether you’ve already won.
Prizes for NS&I Premium Bonds are frequently unclaimed due to a misunderstanding. It’s usually because:
In 2020, NS&I reported that 180,000 cheques totaling over £8 million were returned to them, the majority of which were due to winners moving and forgetting to update their information.
So, first and foremost, double-check that NS&I has your current address or change your account so that any prize money is transferred directly into your bank account.
Remember that there is no time limit for collecting your prizes, so no matter how much time has passed, you can still claim them.
The rest of this article will walk you through the procedure, but before we get started, it’s worth noting that the large prize-winning numbers can be found in our Premium Bond winners article, which is published at the beginning of each month.
Viewing your prize history
Your NS&I number was supplied to you when you signed up for the online or phone service, and it can be found on any letter you’ve received since then.
It’s exactly what it sounds like an app that tells you if you’ve won anything. It will display the total value of your rewards as well as the bond numbers that correspond to them.
Your holder’s number, which is used to group all of your Premium Bonds together, is required by the app.
If you’re not sure what your phone number is, it’s either 10 or 9 digits long, or eight digits long followed by a letter.
If that fails, you can contact NS&I for a new bond record by calling 08085 007 007 (UK) or +44 1772 329880 (outside the UK).
The most convenient way to do so is to go online. You can look at the most recent results, unclaimed prize bond numbers from the previous six months, and any earlier awards you haven’t claimed yet (if you won anything).
You may use your Amazon Alexa to look for unclaimed rewards if you have one.
You can also write to NS&I and request your prize history, remembering to include your name, address, date of birth, and NS&I or Premium Bonds holder number. In exchange, you will receive a list of the rewards you have won.
How to claim Premium Bond prizes
You can call NS&I if you discover out you’ve won a reward but haven’t received it, and you’re registered for their online and phone services.
If you aren’t registered and don’t want to be, you must write to NS&I and state that you have won a reward but have yet to receive it.
If your contact information has changed after you won the prize, you must also state your old and new contact information before signing the letter.
Updating your details with NS&I
If you registered online or by phone, you can update your information by logging onto your account or calling.
Callers in the United Kingdom should dial 08085 007 007, while those outside the United Kingdom should dial +44 1772 329880. Make sure you have your NS&I number and password with you at all times.
Those who aren’t enrolled, however, should contact NS&I to inform them of any changes.