NS&I lesser-known rule that means millions risk losing Premium Bond prize
Millions of Premium Bond customers could find themselves ineligible for prizes due to a lesser-known rule. Over 24 million individuals currently hold these bonds with National Savings & Investments (NS&I), which enter them into a monthly prize draw where they could win up to £1 million.
NS&I clarified the rules in response to a query from a customer on social media platform X (formerly Twitter). The bond-holder asked: "What happens to Premium Bonds one year after the holder's death if probate hasn't been obtained? " They further explained their situation: "We have informed you of the death and the bonds are currently still gaining prizes but frozen. The holding is above the £5,000 figure."
In response, NS&I stated: "When a Premium Bonds holder dies, they are only eligible to earn prizes on the account up to a year after the date of death. After this point, if the Grant of Probate has not yet been obtained, we will still hold the funds but no more prizes can be won on the holding."
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A Grant of Probate is an essential legal document that gives loved ones the authority to handle the deceased's affairs.
It typically takes around 12 weeks for probate to be approved, but in more complex cases, it can take over a year for the documents to come through. When a premium bond-holder passes away, if they were an NS&I customer, then their Premium Bonds cannot be inherited or transferred to another person.
Premium Bonds can continue to participate in the monthly prize draws for up to a year after the bondholder's death.
Once a year has elapsed, the value of the Premium Bonds, along with any prizes won, will be paid out to the deceased's estate.
Those managing the deceased's financial affairs should inform NS&I of their wish to keep the Premium Bonds in the draw by filling out a "bereaved claims" form.
This form is necessary to access any NS&I savings after a customer's demise. NS&I will retain any prizes won until a claim due to bereavement is submitted.
Following this, the prizes will be awarded.