Can you inherit Premium Bonds? NS&I explains rules on prize draws after you die

Premium Bonds may not be for everyone, and NS&I points out that this particularly includes those who are looking for guaranteed returns on their investments or wanting a regular income from their savings. This is because interest is not paid monthly on these forms of savings.


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Instead, Premium Bonds holders are in with the chance to win a tax-free prize in the monthly draw.

This includes the opportunity of being selected for the jackpot prize each month – with this top payout standing at £1million.

Currently, a person must invest a minimum of £25, while there is also an upper limit to how many Premium Bonds a person can hold.

This maximum investment is £50,000 per person.

A change to the annual prize fund interest rate is due to come into effect next month.

From May 2020, the annual prize fund interest rate of 1.40 percent will reduce by 10 basis points to 1.30 percent.

This will mean the odds of winning in the Premium Bonds prize draw will change.

Previously, the odds of winning for each £1 Bond number has stood at 24,500 to one, but from May 1, 2020, this will instead be 26,000 to one.

It’s possible to cash in some or all of their Premium Bonds whenever the holders of them want to, NS&I explains.

As each Premium Bonds is worth £1, the amount that is cashed in must be in whole pounds.

“You cannot sell or give your Premium Bond to someone else,” the NS&I website explains.

Some people may wonder what happens to their Premium Bonds when they die, seeing as Premium Bonds cannot be given to someone else.


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An NS&I brochure on Premium Bonds gives some insight into what happens if a Premium Bonds holder dies.

“If a Premium Bonds holder dies, their Premium Bonds become part of their estate,” it explains.

“The Premium Bonds will continue to take part in prize draws for 12 months following the date of death, unless they are cashed in before that.”

If a person who has died subsequently wins a Premium Bond prize after their death, and they’re sent a death warrant, then NS&I states that this prize warrant should be sent back to NS&I.

The savings bank will then reissue it to the person entitled to the money, once they’ve completed the claim.

NS&I would also hold on to any other prizes the customer wins until they have completed the claim.

“Then we’ll send any future prizes won by warrant (like a cheque) after each prize draw to the person entitled to the money,” NS&I adds.

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