Can I transfer Premium Bonds to a family member?
What happens to Premium Bonds when the owner dies? Premium Bonds are not an asset that can be passed on to a beneficiary in the same way that funds from bank accounts and savings accounts can; they cannot simply be inherited or transferred to someone else's name.
Premium Bonds can make a special gift for a child under 16. Until the child's 16th birthday, the parent or guardian named on the application looks after the Bonds, regardless of who bought them.
If you have Premium Bonds, you can easily change yours or your child's address and contact details by filling out a simple online form. No need to create an account or send us any paper. You'll need your holder's number to hand, as well as your previous and new details.
Can I switch a fixed term investment into another NS&I account? Yes. If you switch the money before the investment's maturity date, a penalty may apply.
Premium Bonds can be bought as gifts online at nsandi.com/gift or by post and the purchaser will need to nominate one of the child's parents or guardians to look after the Bonds until the child turns 16 years old.
Anyone aged 16 or over can buy Premium Bonds. Parents, legal guardians and (great) grandparents can invest on behalf of their child or grandchild aged under 16. You can invest from £25 up to £50,000 in total. Premium Bonds don't pay any interest.
Premium Bonds are not an asset that can be passed on to a beneficiary in the same way that funds from bank accounts and savings accounts can; they cannot simply be inherited or transferred to someone else's name.
The owner can transfer EE and I Bonds to another person with a TreasuryDirect account; however, you must wait five business days after the purchase date to transfer the bonds.
The customer who has died has won a Premium Bond prize and been sent a prize warrant – what should I do? Please send the prize warrant back to us and we'll reissue it to the person entitled to the money, once we've completed the claim.
...
What are my odds of winning with Premium Bonds?
| Prize value | Number of prizes | Odds of winning from £1 bond |
|---|---|---|
| £50,000 | 11 | 1 in 10,218 million |
| £25,000 | 22 | 1 in 5,109 million |
Is there a downside to 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.
How do I buy premium bonds for children under 16? Parents can invest in premium bonds for children. However, children under the age of 16 are not allowed to buy premium bonds, so their parents have to be custodians of their premium bonds.
Each tax year, you can give a tax free gift to someone who is getting married or starting a civil partnership. You can give up to: £5,000 to a child.
How does it work? Anyone can buy Premium Bonds for a child under 16.
Grandparents can buy premium bonds for their grandchildren in the same way they may do so for themselves. They can buy them online, via telephone or post, and will need to have registered with NS&I beforehand. Once grandparents have set up an account, they will need to take charge of it until their grandchild turns 16.
Premium Bonds are subject to Inheritance Tax, and need to be declared as part of the estate for probate. The standard Inheritance Tax rate is, currently, 40 per cent.
Simply put, the answer is no. Some assets can be held jointly with another person (such as a joint bank account) thereby enabling the assets to pass to the survivor owner when the other owner dies.
Savings bonds can be transferred to new owners without probate if they were jointly owned or if the owner named a payable-on-death (POD) beneficiary to inherit them. These bonds can be jointly owned, or they can be registered in POD form, but not both; only sole owners can designate a POD beneficiary.
Regardless of where you cash your bonds, if you are not listed as the owner or co-owner on the bond, you have to submit legal evidence or other documentation to show you are entitled to cash the bond. (We don't return legal evidence.) Note: Savings bonds cannot be transferred.
For paper I bonds, taxable ownership changes ordinarily are not permitted. If you want to change who owns an I bond and want to find out what changes are permitted, write to Treasury Retail Securities Services, PO Box 9150, Minneapolis, MN 55480-9150, or call 844-284-2676 (toll free).
Can I gift a savings bond in my name?
As a TreasuryDirect account holder, you can use the "Gift Box" functionality to purchase a gift bond. The "Gift Box" allows a customer to buy savings bonds for someone else and keep the bonds in their own account until they're ready to give them to the recipient.
If the NS&I savings you are claiming include Premium Bonds, you can continue the holding in the deceased's name. Bonds will remain in each prize draw for up to 12 months after the date of the customer's death. To keep the Bonds invested, you'll need to send the Bonds to us along with the completed claim form.
- Do nothing. The bond will continue to earn interest until the bond matures. ...
- Cash (redeem) the bond.
- Reissue: Have the bond reissued in the survivor's name. ...
- Submit a certified copy of the owner's death certificate, along with FS Form 5396 (download or order).
Each year, we produce a list of the Bond numbers of all unclaimed prizes, dating back to June 1957. A prize that remains uncashed for 18 months is classed as unclaimed.
The interest rate paid on Direct Saver, Income Bonds, Direct ISA and Junior ISA, will increase from today (21 July 2022). The interest rate paid on Guaranteed Growth Bonds, Guaranteed Income Bonds and Fixed Interest Savings Certificates will also be increasing, effective from 1 August 2022.
As NS&I is Government-owned, savings there are as safe as it gets, but these days almost all UK savings are protected anyway. With Premium Bonds there is no risk to your capital – so the money you put in is totally safe – it is only the 'interest' that is a gamble.
What are the odds of winning the Premium Bond jackpot? If you fancy the £1 million jackpot, of which there are two lucky winners each month, then for every £1 bond you hold, in one month, you have a 1 in 56,199,445,087 chance!
There are around 3.3 million prizes in total every month. Winners are notified by text and/or email, or if you win the £1,000,000 prize a person named Agent Million will visit you personally to give you the good news.
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. Not registered? You can easily withdraw money from yours or your child's Premium Bonds without needing to create an online profile.
Premium Bonds and Cash ISAs are better for those who don't need to access their savings immediately and don't want to take on too much risk. If you are comfortable with not generating a regular return and you'd like the opportunity of winning a tax-free prize, then it could be better to pick Premium Bonds over an ISA.
Is there a downside to 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.
Savings are counted as any money you can get hold of relatively easily, or financial products that can be sold on. These include: cash and money in bank or building society accounts, including current accounts that don't pay interest. National Savings and Investments savings account and Premium Bonds.
...
What are my odds of winning with Premium Bonds?
| Prize value | Number of prizes | Odds of winning from £1 bond |
|---|---|---|
| £50,000 | 11 | 1 in 10,218 million |
| £25,000 | 22 | 1 in 5,109 million |
The interest rate paid on Direct Saver, Income Bonds, Direct ISA and Junior ISA, will increase from today (21 July 2022). The interest rate paid on Guaranteed Growth Bonds, Guaranteed Income Bonds and Fixed Interest Savings Certificates will also be increasing, effective from 1 August 2022.
There are around 3.3 million prizes in total every month. Winners are notified by text and/or email, or if you win the £1,000,000 prize a person named Agent Million will visit you personally to give you the good news.
ISAs, National Savings, Premium Bonds and prize winnings do not need to be declared.
Where an inheritance is received it must be reported to DWP (DWP benefits and inheritance money in 2022) once it hits the beneficiary's bank account. Until then, the money is deemed not to be theirs and DWP does not want to know.
You can have up to £10,000 in savings before it affects your claim. Every £500 over that amount counts as £1 of weekly income. If you get Pension Credit guarantee credit, you can have more than £16,000 in savings without it affecting your claim.
What are the odds of winning the Premium Bond jackpot? If you fancy the £1 million jackpot, of which there are two lucky winners each month, then for every £1 bond you hold, in one month, you have a 1 in 56,199,445,087 chance!
Is it better to buy Premium Bonds in a block?
A There are all sorts of theories. However there is absolutely no evidence that holding premium bonds in a single block has a better chance of winning.
The maximum premium bonds are currently £50,000 per person. So you and your partner can hold £50,000 each. Then any children can hold the same in premium bonds too.
