Premium Bonds cannot be inherited or transferred to another person’s name in the same way as funds from bank accounts and savings accounts can.
Instead, if you’re administering someone’s estate and need to deal with their Premium Bonds, you have two options. The first option is to sell them while they are still in the probate procedure. If you do this, the proceeds from the sale will become part of the estate and will be passed down to the beneficiaries after the estate administration is finished. This is the quickest way for Premium Bond beneficiaries to inherit money.
The alternative is to leave them alone for the time being. NS&I can keep Premium Bonds for up to 12 months following a person’s death. They are still eligible for monetary rewards throughout this time. The executor of the estate or a specified beneficiary can contact NS&I after 12 months to claim the rewards and cash out the Bonds. This will postpone the inheritance of wealth, but it may result in greater money in the end. As the executor, you should consult with the beneficiaries who will receive the estate’s funds to determine which option is best for their individual circumstances.
Is it possible to give my premium bonds to someone else?
To begin, let me state that Premium Bonds are a safe investment. They are government-backed and come from NS&I (previously National Savings & Investments). However, you should keep in mind that, after inflation is factored in, they will lose purchasing power from year to year.
There are a few things you should be aware of when it comes to Premium Bonds. To begin with, you can only purchase them for someone else if the receiver is under the age of 16; other family members must purchase them for themselves. They are available for purchase for any child, not only your own children or grandchildren. Premium Bonds for kids can be purchased online or by mail.
Adults can cash in their Premium Bonds whenever they choose but bonds owned by a kid under 16 can only be accessed by the nominated parent or guardian.
What is the procedure for transferring premium bonds?
- Fill out the form, specifying the amount you’d like to switch and the fixed-term investment from which you’d like to switch. Make a note on the form that you want the transition to be deferred until the maturity date. If the investment is within 30 days of maturity, you can do so.
- Then send us the completed form. We’ll require it no later than two working days before the end of your fixed-term investment.
Is it possible for me to change the name on my premium bonds?
Taking a new name For security reasons, you cannot change your name online. You’ll need to fill out a paper form and mail it to us. If we’ve recently requested proof of your identification, you won’t be able to update your information until it’s been processed.
Is it possible to pass on my premium bonds to my grandchildren?
Grandparents can purchase premium bonds for their grandkids just as they can for themselves.
They can purchase them online, over the phone, or by mail, but they must first register with NS&I.
Once grandparents have created an account, they will be responsible for it until their grandchild reaches the age of 16.
Is it possible to purchase Premium Bonds for someone over the age of 16?
Premium Bonds can be purchased by anyone who is 16 years old or older. On behalf of their kid or grandchild under the age of 16, parents, legal guardians, and (great) grandparents can invest.
No interest is paid on Premium Bonds. Instead, your Bonds will be entered into a monthly prize draw to win tax-free gifts.
Premium Bonds – the prize draw
Every month, almost two million awards are distributed to lucky Bond holders whose numbers are determined at random.
For every £1 you invest, you will receive a unique Bond number. Every month, each number has a separate and equal chance of winning a prize.
On the National Savings and Investment (NS&I) website, you may learn more, apply online, and check if you’ve won if you have Premium Bonds.
Premium Bonds can be owned jointly.
Some assets (such as a joint bank account) can be owned jointly with another individual, allowing the assets to flow to the survivor owner after the other owner dies. Outside of the estate, other assets can be designated to a beneficiary (such as life insurance). The assets in these cases can be administered without the need for a probate grant.
Premium bonds can’t be held in a joint account with someone else. Furthermore, premium bonds cannot be designated to pass to a beneficiary when the owner passes away. If the entire worth of NS&I items exceeds £5,000, you have no choice but to file for a grant of probate.
Is it possible for me to transfer Premium Bonds to my husband?
When a Premium Bond holder passes away, the estate executor has the option of cashing the investment or keeping it in place.
If the Premium Bonds are not cashed within the first 12 months, they are entered into the prize draw as usual. A nominated individual or the executor of the estate can claim any awards received. Because the bonds are not transferable, they will remain in the name of the deceased.
The bondholder’s death should be reported to National Savings & Investments as soon as feasible.
If the bonds are chosen off the ballot, the appropriate person will be notified.
Is it possible to sell Premium Bonds over the internet?
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).
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 do I contact Nsandi via email?
Our devoted team will work hard to fix your issue as quickly as possible. In our booklet, we describe how we handle complaints.
You can also send us an email; please remember to include your postal address so that we can respond.
If we are unable to settle your complaint satisfactorily, you may be entitled to report it to the Financial Ombudsman Service, which is a free and impartial dispute resolution service:
Complaints data
We have a fairness and openness ethos. As a result, and in accordance with other financial services companies, we’ve decided to make our complaints data public on our corporate website.