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 for premium bonds to pay off?
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 there a form for converting Premium Bonds to cash?
Log in to cash in your or your child’s Premium Bonds if you’ve already registered:
Premium Bonds can also be cashed online without the need for an account. If you wish to cash in certain Bonds or if you aren’t registered, this is the way to go.
You’ll need your account number and bank account information. If you want to cash in specific Bonds, please have your Bond record handy.
You’ll need the holder number for your youngster as well as the information for your bank account. If you’d want to cash in specific Bonds, please have your child’s Bond record handy.
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.
What happens to Premium Bonds when the owner dies?
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.
How do I claim Premium Bonds that have expired?
Financial experts have told us that they suggest Premium Bonds to their clients 86% of the time.
Over 1.4 million clients have invested more than £30,000 in Premium Bonds, with over 670,000 of them having invested the maximum amount of £50,000.
Access to Premium Bonds prizes
We understand that your clients are going through a difficult period, but we can assure you that they will always be able to access their Premium Bonds awards.
NS&I prize cheques are valid for three months for individuals who have not decided to receive prize monies directly into their bank accounts; however, certain banks will accept them for up to six months.
If your client’s prize cheque has run out, have them phone our customer service line at 08085 007 007 and we’ll issue them a new one.
Other useful tips
Our prize checker app is the easiest way for your customers to find out if they’ve won. It will display them the rewards for this month, as well as any prizes they’ve won in the previous six draws and any prizes older than 18 months that they haven’t claimed since their Bonds were initially submitted into the draw.
Premium Bonds awards for youngsters under the age of 16 can now be deposited straight into the bank account of their parent or guardian.
How will Agent Million deliver the £1 million prizes?
Agent Million usually pays a personal visit to the prize winners to inform them. Agent Million, on the other hand, will not be knocking on their doors in the current conditions. Instead, Agent Million will contact the lucky winners in a variety of ways to inform them of their good fortune.
Please keep in mind that your clients’ funds are completely protected, even if they exceed the FSCS limit.
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.
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.