Premium Bonds are still eligible for prizes after the holder has passed away for a period of 12 months. Premium Bonds cannot be passed on, but the executor can cash them in and include them in the deceased’s inheritance. They’re also not exempt from inheritance taxes.
There is no time limit on claiming prizes won before the 12-month period. If an NS&I customer has passed away, here’s what you should do.
Premium Bonds have an expiration date.
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.
How long do Premium Bonds have to be kept?
You can also cash in before then, but we’ll deduct a penalty equal to 90 days’ interest on the amount cashed in from your payout. Keep in mind that if you cash out all of your Bonds within 90 days of purchasing them, you will receive less money than you put in.
To keep a Bond open, you must keep at least £500 in it when you cash in part of it.
When a Premium Bond holder passes away, what happens?
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.
What if a premium Bond holder passes away?
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.
Should I sell my bonds?
Once you’ve had a savings bond for at least one year, you can cash it in. However, you’ll have to wait five years to avoid penalties. Otherwise, you’ll lose the interest you’ve earned during the last three months.
Your savings bond will grow in value the longer you wait to cash it in. Savings bonds gain value until they reach maturity, which is 30 years. If your savings bond hasn’t reached its maturity date, you should resist cashing it in unless you plan to put the money in a higher-interest account.
By signing onto TreasuryDirect, you can examine the current value of your electronic savings bond and see how it is increasing. Use the US Treasury’s online savings bond calculator for paper bonds.
I’m not sure what to do with my old savings bonds.
If you hold Series E or EE bonds released after 1974, you can use the Treasury Hunt tool to determine if any bonds registered with your Social Security number have stopped paying interest.
If your savings bonds have reached maturity, you should cash them in and invest the proceeds elsewhere. Whether you have paper bonds, check with your bank to see if they cash them (not all banks do, and some will cash in savings bonds only for customers who have had accounts for at least six months). See How to Cash in Savings Bonds for more information.
Is there any value in premium savings bonds?
- 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?
How can I look for old Premium Bonds in the United Kingdom?
Bond holders should keep in mind that the winnings do not expire, so you can check your history to see if you’ve won before.
If you haven’t checked in a while, double-check that your account has been updated with your current address and proper information.
Another option for checking your bonds is to download the prize checker app and log in with your holder’s number. If you forget your phone number, call the NS&I at 08085 007 007 (UK) or +44 1253 832007 (outside the UK) and ask for assistance.
If you prefer to ask by mail, you can write to NS&I and ask them to provide you the prize history for your bonds.
Send the letter to NS&I, Glasgow, G58 1SB, with your name, address, NS&I number, or Premium Bonds holder’s number.