What to do if an NS&I customer has died (2024)

FAQs

How do I report a death to NS&I? ›

Call us free on 08085 007 007.

NS&I does allow them to be held by the estate for one year after death and during this time they will still be entered into the prize draw each month. Any winnings will be sent by warrant, which is similar to a cheque, to the person entitled to claim the money.

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.

Valuing the assets

All worldwide assets, such as cash and investment accounts, ISAs and shares, are valued as at the date of death, but are not distributed until probate is granted. Taxes are also normally paid based on the date of death values.

Like banks and building societies, National Savings and Investment (NS&I), which hold government-backed Premium Bond investment products, limits how much money they can release without a Grant of Probate.

You report the interest that accumulated on the bond during the bondholder's lifetime on their final tax return. The estate would be responsible for paying any tax due and going forward, you'd owe tax on any interest that continues to accrue on reissued bonds.

If the account holder established someone as a beneficiary, the bank releases the funds to the named person once it learns of the account holder's death. After that, the financial institution typically closes the account.

How we pay your prizes. Having your prizes paid straight into your bank account (or NS&I Direct Saver) is quick, easy and safe. If you win, we'll let you know the good news by email or text message. You'll then normally receive your prize money in your bank account by the 7th working day of the month.

Our 100% guarantee

But it comes with a maximum limit - it's normally up to the value of £85,000 per person or £170,000 for joint accounts. Now, for many people this level of protection is more than enough but if you have a larger sum of money to put away then you might be wondering how this may affect you.

Premium Bonds are an investment product issued by National Savings and Investment (NS&I). Unlike other investments, where you earn interest or a regular dividend income, you are entered into a monthly prize draw where you can win between £25 and £1 million tax free.

Can old Premium Bonds be cashed in? ›

Premium Bonds

You can cash in all or part of your Bonds at any time. If you're registered to manage your savings online or by phone, simply log in or call us.

0800 092 1228 for our dedicated Adviser Helpline.

You may not need probate if the person who died: only had savings. owned shares or money with others - this automatically passes to the surviving owners unless they've agreed otherwise. owned land or property as 'joint tenants' with others - this automatically passes to the surviving owners.

This is usually when the amount of money in the account is below a certain threshold (usually £15,000-25,000). However, in many cases the only way to legally access money belonging to an estate is to administer that estate and apply for a Grant of Probate. This process is referred to as probate.

Once the necessary documents are received, a new account is typically set up for the beneficiary or estate, at which time securities registered in the name of the deceased person will be transferred.

Any assets that are titled in the decedent's sole name, not jointly owned, not payable-on-death, don't have any beneficiary designations, or are left out of a Living Trust are subject to probate. Such assets can include: Bank or investment accounts. Stocks and bonds.

Along with other retirement accounts and life insurance, savings bonds are often considered “non-probate assets,” meaning that they are not typically bequeathed in accordance with a person's will.

Usually, there can be up to £10,000 to £15,000 in the bank before Probate is needed but this isn't always the case. All banks and building societies have different thresholds for releasing funds without a Grant of Probate.

It's possible to avoid paying taxes on inherited savings bonds if you qualify for the education exclusion. That exclusion allows you to sidestep taxes on the interest income from bonds if you: Inherit Series EE or Series I savings bonds issued after 1989.

16. How are savings bonds taxed? Savings bond interest is exempt from state and local income tax. Savings bond interest is subject to federal income tax; however, taxation can be deferred until redemption, final maturity, or other taxable disposition, whichever occurs first.

How can I avoid paying taxes on savings bonds? ›

You can skip paying taxes on interest earned with Series EE and Series I savings bonds if you're using the money to pay for qualified higher education costs. That includes expenses you pay for yourself, your spouse or a qualified dependent. Only certain qualified higher education costs are covered, including: Tuition.

Upon your death, unsecured debts such as credit card debt, personal loans and medical debt are typically discharged or covered by the estate. They don't pass to surviving family members. Federal student loans and most Parent PLUS loans are also discharged upon the borrower's death.

Only the widow, widower or child of a Social Security beneficiary can collect the $255 death benefit, also known as a lump-sum death payment. Priority goes to a surviving spouse if any of the following apply: The widow or widower was living with the deceased at the time of death.

Legally, only the owner has legal access to the funds, even after death. A court must grant someone else the power to withdraw money and close the account.

Simply give the details to your bank, tell them how much to transfer and when. You'll normally be able to do this online, by phone or in a branch. There's no need to enter your card details and we'll update your account when we've received the money. This usually takes two to three banking days.

One in a million

Our Agents Million have the important task of delivering the winning news in person to the two monthly jackpot winners. Since the first Premium Bonds millionaire in 1994, over 500 new millionaires have been paid a visit.

You can have prizes paid straight to your bank account (or NS&I Direct Saver) or reinvested into more Bonds, giving you even more chances to win. Choose either of these options and we'll let you know by text or email if you win.

Those with the maximum £50,000 invested have a 1 in 1,204,502 chance of winning £1 million, compared with 1 in 1,178,198 a year ago. In the past 12 months, the average holding of the 24 people to win the top prize has been £34,876. Nine of these winners — or just over a third — had the maximum £50,000 invested.

The maximum investment in premium bonds is £50,000, but if you are considering placing anything like that sum of money in bonds, you would be well advised to seek financial advice before placing your trust in Electronic Random Number Indicator Equipment (ERNIE).

The more you save (up to the maximum of £50,000), the more chances of winning you have! Prizes range from £25 to two £1million jackpots every month. You can buy Premium Bonds with just £25 and, for many of us, it's a more exciting kind of saving.

What are the disadvantages of Premium Bonds? ›

Drawbacks of Premium Bonds

If you want a regular income, Premium Bonds may not be the best option for you - you may be better off looking at different types of investment or savings accounts, including isas. You'll also receive no interest, as the interest accrued on bonds goes towards the prize fund.

Balancing risk and reward

While Cash ISAs and Premium Bonds are very low-risk, they are unlikely to offer high returns. If you're happy to take more risk for the possibility of better returns, then a Stocks and Shares ISA might be better for you.

All products offer 100% capital security as NS&I is backed by HM Treasury. NS&I announced on 20 June 2023 that the Premium Bonds prize fund rate would increase to 3.70% from 3.30%, with the odds remaining at 24,000 to 1. The changes are effective for the July 2023 prize draw and more information can be found here.

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.

You never need to worry about an unclaimed prize. We'll hold on to it until you get in touch with us. And there's no time limit to make your claim. Just log in to view your prize history, or use our prize checker to see if you have any prizes you don't know about yet.

When savings bonds reach final maturity, and cease earning interest, the Bureau does not notify the bondholder. For those fully matured bonds remaining unredeemed, there is no active program by the Bureau to locate the bondholders and pay them the proceeds to which they are entitled.

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.

Call us free on 08085 007 007. Our virtual assistant can help you with general queries 24/7. You can use our dedicated number: +44 1772 329880.

Bonds. If your loved one held a Fixed Rate Bond in their sole name, you can close it early and get paid the interest that's built up. Or if you prefer, you can keep it open until it reaches the end of its fixed term. If you keep it open, the account has to be left in your loved one's name.

Joint bank accounts

Couples may also have joint bank or building society accounts. If one dies, all the money will go to the surviving partner without the need for probate or letters of administration. The bank may need the see the death certificate in order to transfer the money to the other joint owner.

How much does an estate have to be worth to go to probate in UK? ›

In the United Kingdom, the value of an estate does not determine whether or not it must go through the probate process. Instead, whether an estate must go through probate depends on a number of factors, including the type of assets that are in the estate and whether the deceased person left a valid will.

There are certain occasions where a probate application will not be necessary. This includes cases where: All property and bank accounts of the person who has died were held jointly with someone who is still living (e.g. a spouse or civil partner) The estate consists of only cash and personal belongings.

If probate is not required then the bank will require a small estates indemnity which confirms that the person closing the account and receiving the funds will do so in accordance with the terms of the will or the Intestacy Rules.

The main way a bank finds out that someone has died is when the family notifies the institution. Anyone can notify a bank about a person's death if they have the proper paperwork. But usually, this responsibility falls on the person's next of kin or estate representative.

When you're inheriting either cash or stocks, one isn't better or worse than the other. Each offers benefits. Having money in hand upon a family member's death means the ability to use it immediately for any purpose. However, there's also the risk of quickly running out of the entire inheritance.

If the account holder established someone as a beneficiary, the bank releases the funds to the named person once it learns of the account holder's death. After that, the financial institution typically closes the account.

Your Social Security number and the deceased worker's Social Security number. A death certificate. (Generally, the funeral director provides a statement that can be used for this purpose.)

You should notify us immediately when a person dies. However, you cannot report a death or apply for survivors benefits online. In most cases, the funeral home will report the person's death to us. You should give the funeral home the deceased person's Social Security number if you want them to make the report.

If a payment was issued after the person's death, Social Security will contact the bank to ask for the return of those funds. If the bank didn't already know about the person's death at that point, this request from Social Security will alert them that the account holder is no longer living.

Inheriting I Bonds

The executor of the decedent's estate can choose to include all pre-death interest earned on the bonds on the decedent's final income tax return. If this is done, the beneficiary reports only post-death interest on Form 1040 when the bonds mature or are redeemed, whichever comes first.

Who gets the $250 Social Security death benefit? ›

A surviving spouse, surviving divorced spouse, unmarried child, or dependent parent may be eligible for monthly survivor benefits based on the deceased worker's earnings. In addition, a one-time lump sum death payment of $255 can be made to a qualifying spouse or child if they meet certain requirements.

Benefits end in the month of the beneficiary's death, regardless of the date, because under Social Security regulations a person must live an entire month to qualify for benefits. There is no prorating of a final benefit for the month of death.

Who typically notifies the bank when an account holder dies? Family members or next of kin generally notify the bank when a client passes. It can also be someone who was appointed by a court to handle the deceased's financial affairs.

To acquire the full amount, you need to maximize your working life and begin collecting your check until age 70. Another way to maximize your check is by asking for a raise every two or three years. Moving companies throughout your career is another way to prove your worth, and generate more money.

You can apply for benefits by calling our national toll-free service at 1-800-772-1213 (TTY 1-800-325-0778) or by visiting your local Social Security office. An appointment is not required, but if you call ahead and schedule one, it may reduce the time you spend waiting to apply.

Upon your death, unsecured debts such as credit card debt, personal loans and medical debt are typically discharged or covered by the estate. They don't pass to surviving family members. Federal student loans and most Parent PLUS loans are also discharged upon the borrower's death.

If the account holder established someone as a beneficiary, the bank releases the funds to the named person once it learns of the account holder's death. After that, the financial institution typically closes the account. If the owner of the account didn't name a beneficiary, the process can be more complicated.

This is not a bad idea, but most banks will still immediately freeze the account. This is because they will usually require a death certificate and an affidavit of survivorship by each of the surviving heirs.

A bond provider may add interest for the period between the bond ending and the date the death claim is actually paid. This will be treated as income of the estate and will be subject tax at 20%. In addition the bond may contain a small amount life cover typically between 0.1% and 1% of the fund value.

You can skip paying taxes on interest earned with Series EE and Series I savings bonds if you're using the money to pay for qualified higher education costs. That includes expenses you pay for yourself, your spouse or a qualified dependent. Only certain qualified higher education costs are covered, including: Tuition.

Do you put a beneficiary on an I Bond? ›

Series EE and I

Once in your TreasuryDirect account, the bond will be registered in your name alone. You can then add either a secondary owner or beneficiary.