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).
How long does it take to redeem premium bonds via the internet?
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.
How can I get my gains from premium bonds deposited into my bank account?
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.
What are my options for selling my premium bonds?
Logging into your account online, which is available 24 hours a day, is the simplest way to sell or cash in your NS&I Premium Bonds.
If you applied for the bonds online, you’ll already be registered, so all you’ll need is your information. These will include your NS&I numbers as well as the password you’ve created.
On the right-hand side of the screen, once you’ve logged into your account, you should notice an option to ‘cash in’ your Premium Bonds. On the screenshot below, we’ve circled it.
Following that, you’ll be asked if you want to cash in your oldest bonds first or not, and then whether you want to postpone your payment until the next prize draw.
You’d have to wait until the beginning of the next month to get your money back if you chose that choice. If you choose to obtain it right away, NS&I claims the money will be in your designated bank account in three working days.
If you bought your bonds online, your bank account information should already be in the system, so you won’t have to do anything further.
How to cash in NS&I Premium Bonds by phone
If you prefer not to use the internet, you can easily cash in your NS&I Premium Bonds by calling the NS&I phone number.
You are already registered if you applied for the bonds over the phone. Simply dial 08085 007 007 to reach us.
Filling out the Premium Bonds Cash In form
You can withdraw your money by filling out the Premium Bonds Cash In form if you didn’t apply for your Premium Bonds online or by phone.
Simply check the appropriate box in section three of the form to indicate how many bonds you want to cash in.
Simply specify the beginning of the range of numbers in section four if you wish to cash in a specific set of Bond numbers.
If you leave section four blank or check ‘No,’ NS&I will cash in your oldest bonds first.
How will I be paid for my Premium Bonds?
The sixth section of the form is where you specify how your Premium Bonds will be paid out.
You can get cash by direct deposit into your bank account or by sending a warrant, which is similar to a check, in the mail.
According to NS&I, processing your request generally takes eight working days from the time it is received (unless you opted to defer the payment until after the next prize draw).
If you haven’t received your payments by then, contact NS&I ideally by phone at 08085 007 007, as tweeting and emailing can be risky. Here’s where you can learn more about contacting NS&I.
Don’t know what to do with your savings once you’ve cashed your bonds? Check out our full list of places you can get the best deal on your money.
Best time to sell your Premium Bonds
If you don’t have to sell your bonds right away, consider when the best time is to get rid of some or all of your holdings.
This manner, your holdings will have one more chance to win big in the monthly draw before being withdrawn.
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.”
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 currently 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.
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 to reinvest premium bond winnings?
It all depends on your financial circumstances and whether you prefer a prize draw to a traditional interest rate.
Many other bondholders, on the other hand, only receive tiny awards, and some do not receive anything at all.
We’ll compare the probability of winning Premium Bond awards to the lottery jackpot and savings accounts later in this post.
Your money is protected
Premium Bonds are offered by the government-owned National Savings and Investments (NS&I). This ensures that the money of clients is completely safe.
In contrast, bank and building society savings accounts are regulated by the Financial Services Compensation Scheme in the event that the provider goes bankrupt. The Financial Services Compensation Scheme (FSCS) only covers deposits up to £85,000 per individual and per institution.
However, because the maximum amount you can invest in Premium Bonds is £50,000, you might get the same level of security by putting that money in a high-street bank account.
They are tax-free
Because most of us have a personal savings allowance, I argue it is a benefit for certain people (PSA).
- Basic-rate taxpayers can earn interest on their savings of up to £1,000 per year without paying any tax.
- The PSA does not assist additional-rate taxpayers (those who pay the highest tax rate of 45 percent).
Because 95% of people do not pay any tax on their savings interest due to the allowance, Premium Bonds would provide no meaningful tax benefit.
It’s nevertheless comforting to know that if you do win a large sum of money, it will be tax-free.
You can reinvest
When you win with Premium Bonds, you get a form of compound interest effect.
You can have the money reinvested instead of taking cash (unless you already have the maximum £50,000).
Your winnings can be used to purchase more bonds. As a result, every £1 you invest buys a new bond, each of which has a unique number that is put into a monthly prize draw.
An easy access option
If you’re seeking for a temporary home for your money and will need access to it quickly, Premium Bonds could be a good option.
You might not want to put your money in a fixed-term savings account (where you lock your money up to get a greater interest rate) or invest in the stock market, which is more risky.
Premium Bonds can be withdrawn at any moment through the NS&I website (although it can take up to eight working days for the money to arrive in your bank account).
What are the disadvantages of Premium Bonds?
Premium Bonds are, in this sense, a sort of gambling, analogous to purchasing National Lottery tickets, rather than a savings or investment account.
It’s important to note, though, that just the “interest” is a gamble. The money you put into Premium Bonds is kept safe and secure.
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.