Unlike most other assets, Premium Bonds cannot simply be passed on to beneficiaries of the Estate, as they cannot be transferred into someone else's name.
Premium Bonds can be held by NS&I for 12 months after death. During this time, they are still eligible for cash prizes. After 12 months have passed, the executor of the estate or a nominated beneficiary can contact NS&I to claim the prizes and cash out the Bonds.
Dealing with Premium Bonds after someone's death
Assets are generally sold or encashed during the administration period, although some can be transferred to beneficiaries who wish to keep the holding.
Get a certified copy of the death certificate for everyone who has died who is named on any of the bonds. Have each person who is entitled to a distributed bond also fill out and sign the appropriate forms: If they want cash for their bond: FS Form 1522.
*If you know your Premium Bond holder's number, you can go to the prize checker section on the NS&I website or download the prize checker app - at the App store and on Google Play. If you own Amazon Alexa, there's a Premium Bonds prize checker skill there too.
For those, you must look at the issue date. EE and I bonds earn interest for 30 years from the issue date. HH bonds earn interest for 20 years from the issue date.
If you'd like to take money out of Premium Bonds, but make sure that certain Bonds are kept in the draw, you can do this online using a form. You can also download, print and complete a cashing in form. Then post your completed form to us together with the Bond certificates to be cashed in (if you have them).
Investment bonds. If the deceased was the only or the last surviving life assured, a chargeable event will occur on their death and the bond will come to an end. Any gain will be assessed on the bond owner and the LPRs should include it in the deceased's self-assessment return for the tax year of death.
When you consider that savings bonds take 20 to 40 years to mature, it's easy to see how people could forget about them. The good news is that in 2000 the Treasury Department started its "Treasury Hunt" website, where you can search for savings bonds in your family's name.
After the one-year mark, you can go ahead and cash in your bond, but you will get hit with a penalty of three months' interest earned on the bond. There is no penalty if you simply hold onto the bond after five years.
The Executor can trace and claim Premium Bonds belonging to the deceased either online or by post. If applying by post, they must include a copy of the death certificate and the Will. If applying online, the Executor must complete a bereavement claim form.
Yes, grandparents can gift premium bonds to their grandchildren. How to buy premium bonds for grandchildren is relatively the same way as explained earlier, and unless the child is above 16, their nominated guardian will oversee the premium bond account.
We'll also send you an acknowledgement of your investment. But only the nominated parent or guardian will be able to manage and cash in the Bonds.
How to claim Premium Bonds after a death. The Executor can trace and claim Premium Bonds belonging to the deceased either online or by post. If applying by post, they must include a copy of the death certificate and the Will. If applying online, the Executor must complete a bereavement claim form.
What are the prize amounts for premium bonds? Most recently, the total prize amount for premium bonds was £96,395,075. The prizes are banded into higher value (£5,000 to £1million), medium value (£500 and £1,000) and lower value prizes (£25, £50 and £100). There are around 3.3 million prizes in total every month.
A $500 Series EE savings bond is worth $1,000, if you hold it for 20 years. A $10,000 bond is worth $20,000 after 20 years.
If you have either two owners, or a beneficiary name on the bond, then if one dies the other owns the bond. The difference is that a co-owner has the equal right to cash in the bond at any time.
What is the average rate of return on Premium Bonds? You don't get a Premium Bond interest rate like you would have with most savings products, instead they have an average rate of return. For every £1 bond, the odds of you winning a prize are 24,000 to one, so pretty slim. This translates to a “prize rate” of 3.3%.
General investment accounts and shares
Assets will be frozen until Probate has been issued. Any ongoing transactions at the date of death will continue. Interest and dividends will continue to be added to the account.
Are my old Premium Bonds still valid? Yes. As long as you haven't cashed your Bonds in, they're still valid and they're still being entered into our monthly prize draws.
Call the NS&I at 08085 007 007 if you're unsure what to do. The NS&I will answer questions for free over the phone. Give them a ring any day from 7am to 10pm and they'll help answer any questions you have regarding old bonds—they won't be able to relay personal info over the phone, though.
Most savings bonds stop earning interest (or reach maturity) between 20 to 30 years. It's possible to redeem a savings bond as soon as one year after it's purchased, but it's usually wise to wait at least five years so you don't lose the last three months of interest when you cash it in.
Once the cumulative total of tax deferred withdrawals (i.e. those within the 5% allowance) is greater than the amount invested, all future withdrawals will be fully taxable. For someone, who has been taking 5% withdrawals from the outset this will mean withdrawals taken after 20 years will result in a chargeable gain.