Premium Bonds when someone dies: check for £123m in unclaimed prizes first

Premium Bonds are held by around 24 million people in the UK, making them one of the most common assets an executor encounters when settling an estate. When the holder dies, the bonds stay in the monthly prize draw for up to 12 months from the date of death – prizes continue to be paid out to the estate throughout that window. After the 12 months, the bonds must be cashed in at face value and paid to the estate. They cannot be inherited as bonds or transferred to anyone else. This guide explains exactly how the process works: the 12-month prize window, NS&I’s unusually low £5,000 probate threshold, how inheritance tax applies (including IHT form IHT406), how to claim step by step, and the differences across England, Wales, Scotland, and Northern Ireland.

The short answer

When a Premium Bonds holder dies, their bonds remain eligible for the monthly prize draw for up to 12 months from the date of death. After that window closes – or when the estate is settled, if earlier – the bonds are cashed in and the proceeds paid to the estate at face value. Premium Bonds cannot be transferred to another person; they must be repaid.

The single most important rule to know: NS&I requires a grant of probate (or letters of administration, or Confirmation in Scotland) if the deceased’s total NS&I savings exceed £5,000. This threshold is far lower than most banks, and it catches many families off guard.

Before you claim, it is also worth checking whether the deceased had any older, forgotten prizes sitting unclaimed – NS&I currently holds £123.5 million across 2,817,080 unclaimed Premium Bonds prizes, and they never expire.

Source: NS&I – What to do if an NS&I customer has died (last verified June 2026)

The 12-month prize window

Premium Bonds remain in the monthly prize draw for up to 12 months from the date of death – not 12 months from when you notify NS&I. The clock starts the moment the person dies, so time is already passing while you gather paperwork. The draw runs in whole months, so the bonds take part in each monthly draw up to the point you claim or until the 12-month limit is reached, whichever comes first.

As executor or administrator, you have a choice:

Neither choice is right or wrong – it depends on how quickly the estate needs to be settled and whether the prize draws feel worth the wait. The face value never changes; it is always repaid in full. Premium Bonds do not earn interest, so capital sitting in the draw is not growing beyond the chance of a prize.

Prizes after death are paid by warrant. Once NS&I has been told of the death, prizes are no longer credited to the deceased’s account. They are paid by paper warrant (similar to a cheque) made out to the person legally entitled to the estate. If you receive a prize warrant before the claim is fully processed, return it to NS&I – it will be reissued correctly once the claim completes.

Prizes do not expire. Prizes won before the death but never collected do not lapse. They stay claimable through NS&I’s prize checker. As of 1 July 2026, NS&I holds £123.5 million in unclaimed prizes across all Premium Bonds accounts – 2,817,080 prizes, some going back decades. Worth checking before you close the estate.

Source: NS&I – What to do if an NS&I customer has died (last verified June 2026)

What happens after 12 months

If the 12-month prize window passes without the bonds being claimed, NS&I removes them from the prize draw and holds the invested capital in its unclaimed funds.

The money does not disappear. It stays claimable by the estate at any time, with no time limit and no charges – but no further prizes can be won, and once the bonds leave the draw they cannot be re-entered.

If you are administering an estate and realise more than 12 months have passed since the death, contact NS&I on 08085 007 007 to begin the claim for the unclaimed capital.

Probate and the £5,000 threshold

NS&I applies one of the lowest probate thresholds of any major UK financial institution.

If the deceased’s total NS&I savings are £5,000 or more, NS&I will require a grant of representation – a grant of probate (with a will) or letters of administration (without one) in England and Wales, or Confirmation in Scotland – before releasing any funds.

This threshold applies to all NS&I products combined, not Premium Bonds alone. Someone with £3,500 in Premium Bonds and £2,000 in a Direct Saver has £5,500 in total NS&I savings, which is above the threshold.

Compare this with the major banks:

An estate that would be straightforward at a high-street bank can require full probate documentation at NS&I. This is a common trap – many executors do not expect it. NS&I’s policy also states that the Director of Savings keeps discretion to request a grant of representation for any amount, even below £5,000.

Source: NS&I – What to do if an NS&I customer has died (last verified June 2026)

If you need to apply for probate, you can do it yourself through gov.uk/applying-for-probate or use a probate solicitor. Our guide to how long probate takes gives a realistic sense of the timeline, and do I need probate? explains when a grant is and is not required.

Executor or administrator: who can act

Only the person with legal authority over the estate can deal with NS&I. That is the executor if there is a will (named in the will and confirmed by the grant of probate), or the administrator if there is no will (appointed under the rules of intestacy and confirmed by letters of administration). Beneficiaries who are not also executors or administrators cannot claim the bonds directly – they receive their share once the estate is distributed.

If the estate is below the £5,000 NS&I threshold and no grant is needed, NS&I will still ask the person claiming to confirm they are entitled to act, usually as the next of kin or the person dealing with the estate.

What you need to do: step by step

1. Notify NS&I as soon as possible. You can do this by phone, online, or by post. Notifying promptly means the 12-month window is registered properly. Delaying does not extend the period – the clock runs from the date of death, not the date you tell NS&I.

2. Contact NS&I:

   • Phone: 08085 007 007 (free from UK landlines and mobiles; Monday–Friday 8am–6pm)
   • Online form: forms.nsandi.com
   • Post: NS&I, Sunderland, SR43 2SB

3. Gather the required documents:

   • Original or certified copy of the death certificate
   • Deceased’s full name, address, date of birth, and date of death
   • Your full name and address as executor or administrator
   • NS&I holder’s number, if known (found on NS&I correspondence or old prize warrants)
   • Your bank account details for the repayment
   • Grant of probate, letters of administration, or Confirmation, if total NS&I savings are £5,000 or more

4. Decide whether to keep the bonds in the draw or cash in immediately. NS&I asks this as part of the claim.

5. Wait for NS&I to process the claim. NS&I’s standard service is around 11 working days from receiving complete documentation, though it has quoted longer – up to eight weeks – during busy periods, so confirm the current timescale when you get in touch.

6. Receive payment. The bond face value is paid by BACS to the bank account you specify. Prize warrants are sent separately by post.

For the full step-by-step on dealing with NS&I across all account types, see how to notify NS&I when someone dies.

Claiming online versus by post

NS&I offers an online bereavement claim form that walks you through the details and lets you tell NS&I about all the deceased’s accounts in one place. For most estates this is the quickest route. The postal form (the NS&I death-claims form) covers the same ground and may suit executors who prefer paper or are sending certified document copies in the same envelope. Either way, NS&I will write to you if it needs anything further, such as a grant of representation once the value of the holdings is known.

Can Premium Bonds be inherited?

Premium Bonds cannot be transferred from one person to another, and they cannot be left to a named beneficiary as bonds. What happens instead is:

• The bonds form part of the estate
• They are cashed in at face value during estate administration
• The cash proceeds are distributed to beneficiaries under the will or the rules of intestacy

If a beneficiary wants to hold Premium Bonds after inheriting cash, they can open their own NS&I account and buy new bonds. The minimum purchase is £25, and the maximum any one person can hold is £50,000.

Scotland and Northern Ireland

The Premium Bonds process is the same across the whole UK, but the legal document that proves your authority differs by nation:

• England and Wales: grant of probate (with a will) or letters of administration (without one)
• Scotland: Confirmation, issued by the sheriff court
• Northern Ireland: grant of probate or letters of administration issued by the Northern Ireland Courts and Tribunals Service

NS&I accepts the relevant grant for each nation, and the £5,000 threshold applies the same way throughout. For Scottish estates, see our guide to how long probate takes, which covers Confirmation timelines.

Finding lost or forgotten bonds

Older Premium Bonds are easy to lose track of, especially paper certificates bought decades ago. There are three routes to check:

1. Contact NS&I directly. Call 08085 007 007 and explain you are the executor. NS&I can trace accounts in the deceased’s name – ask about the tracing service. You will need the deceased’s full name, date of birth, and last address.

2. Search My Lost Account. The free service at mylostaccount.org.uk covers NS&I as well as banks and building societies.

3. Check NS&I paperwork. Holders receive a holder’s number that appears on prize warrants and statements. Look through the deceased’s papers for anything from NS&I or National Savings.

Common questions

What if the deceased had more than £5,000 in Premium Bonds?

If the deceased held more than £5,000 across all NS&I products (not just Premium Bonds), NS&I requires a grant of representation before releasing the funds. You apply to the Probate Registry – through the government’s online service at gov.uk/applying-for-probate or via a solicitor. NS&I will not release the money until the grant is in place. The bonds stay in the prize draw during this period, up to the 12-month limit from the date of death, so there is no penalty to the estate from the time probate takes, provided the window has not expired.

How do I find out if someone had Premium Bonds?

Call NS&I on 08085 007 007 and ask about its tracing service, search the free My Lost Account service, and check the deceased’s paperwork for an NS&I holder’s number. See the “Finding lost or forgotten bonds” section above for the full detail.

Are Premium Bonds prizes taxable after death?

Premium Bonds prizes are always tax-free – for the holder and for the estate. A prize won after death, during the 12-month window, is paid to the estate free of income tax. The face value of the bonds, however, is part of the estate for inheritance tax purposes. See our guide to inheritance tax for how the estate is valued.

What if Premium Bonds were held jointly?

Premium Bonds cannot be held jointly. Every holding belongs to a single named individual. If you believed the deceased held bonds jointly with a partner, that is not possible – the bonds are in one person’s name alone, and they pass through that person’s estate.

How long does it take to cash in Premium Bonds after a death?

For estates below the £5,000 NS&I threshold: typically around 11 working days after NS&I receives all completed paperwork, though it has quoted up to eight weeks in busy periods. For estates above £5,000: the main delay is obtaining probate, which averages around 16 weeks in England and Wales for a straightforward application (gov.uk/applying-for-probate). Once NS&I has the grant, the claim is then processed within its current service time.

What if there are unclaimed prizes?

NS&I runs a free prize checker at nsandi.com/prize-checker. With the deceased’s holder’s number, you can check for any unclaimed prizes going back years. Unclaimed prizes do not expire and are held by NS&I indefinitely.

As of 1 July 2026, NS&I held £123.5 million in unclaimed Premium Bonds prizes – 2,817,080 prizes in total, including 3,466 prizes of £1,000 or more (nsandi.com, figures reported by MoneyWeek and dated 1 July 2026). Many belong to people who lost track of older bonds. Running a prize check before closing the estate is worth the few minutes it takes, especially if the deceased held bonds for many years.

Premium Bonds and inheritance tax

Premium Bonds prizes are always free of income tax and capital gains tax – for the holder during their lifetime and for the estate after death. This tax-free status does not extend to inheritance tax. For IHT purposes:

• The face value of the bonds on the date of death forms part of the estate and is included in the IHT calculation.
• Unclaimed prizes at the date of death are also part of the estate and must be declared. If the deceased had outstanding prize warrants they never cashed, those sums count toward the estate’s total value.
• Prizes won after death, during the 12-month window, are paid directly to the estate – they are not counted as part of the estate at the date of death, but the estate will receive them as income once paid.

Reporting Premium Bonds on the IHT400

If the estate is large enough to require an IHT400 (Inheritance Tax Account), Premium Bonds are reported on form IHT406 – Bank and building society accounts and National Savings and Investments. Box 54 is specifically for NS&I Premium Bonds. You enter:

• The face value of all bonds at the date of death
• The value of any unclaimed or uncashed prizes at the date of death (add these to the bond value for the IHT406 total)

NS&I will provide a date-of-death valuation once you notify them. The IHT406 is a supplementary form used with the main IHT400 when the estate exceeds the inheritance tax threshold.

Source: HMRC – IHTM10081: Premium Bonds (box 54) | IHT406 form – GOV.UK

When to keep the bonds in the draw – and when to cash in early

As executor, you decide whether to keep the bonds in the monthly prize draw for up to 12 months or cash them in immediately. Neither choice is wrong, but the right decision depends on the estate.

Reasons to keep the bonds in the draw:

• The holding is large. At NS&I’s current prize fund rate, the statistical chance of winning a prize is roughly 1 in 22,000 per £1 bond per month. A holding of £50,000 (the maximum) gives a meaningful probability of multiple wins over 12 months. The prizes are tax-free and add directly to the estate.
• Probate is already in progress. If the estate is above the £5,000 threshold and you are waiting for the grant anyway, leaving the bonds in the draw costs nothing and the 12 months starts from the date of death, not the date you notify NS&I.
• The estate has no immediate liquidity pressure. If beneficiaries are not waiting urgently for funds, there is no downside to keeping the bonds active while other aspects of the estate are resolved.

Reasons to cash in early:

• The holding is small. Below roughly £500, the monthly prize odds are low enough that keeping the bonds in the draw is unlikely to change the outcome meaningfully.
• Beneficiaries need funds quickly. Cashing in removes the bonds from future draws, but the face value is paid promptly (around 11 working days for sub-£5,000 estates after NS&I receives complete paperwork, though up to eight weeks in busy periods).
• The estate needs certainty. Some executors prefer to know the exact value in hand rather than leave an open balance.

The face value never changes and is always repaid in full, so cashing in early costs the estate nothing except the chance of a future prize.

Why Premium Bonds cannot be transferred – and which NS&I accounts can

Premium Bonds are one of several NS&I products, but they are treated differently from the rest on death. Many NS&I accounts can be transferred to a new owner or held by the estate as ongoing investments, but Premium Bonds cannot.

If the deceased held a mix of NS&I products, some may be transferable to the estate or to a beneficiary, while Premium Bonds and cash savings accounts must be redeemed. Contact NS&I on 08085 007 007 to establish what the deceased held and how each product is treated.

Source: NS&I – What to do if an NS&I customer has died (last verified June 2026)

Planning ahead: what to say in your will about Premium Bonds

If you hold Premium Bonds yourself and want to make your executor’s job easier, your will can include a specific direction about how the bonds should be handled. Premium Bonds cannot be left to a named beneficiary as bonds – they must always be redeemed on death. What your will can do is:

1. Name the intended recipient of the proceeds. Since the bonds are cashed in and the cash forms part of the estate, you can direct in your will that “the net proceeds from redemption of my NS&I Premium Bonds shall be paid to [name].” This is clearer than a generic residue clause when a specific beneficiary has been counting on that sum.

2. Record your holder number. Including your NS&I holder number (found on any NS&I correspondence or prize warrants) in a document kept with your will – or noted in the will itself – saves your executor significant time tracing the account. Without the holder number, NS&I can still trace the holding by name, date of birth, and last address, but it adds delay.

3. Clarify what you held. A brief note of approximate holding value helps your executor identify whether probate will be needed for NS&I and plan accordingly.

You cannot nominate a beneficiary to receive the bonds themselves, and you cannot instruct NS&I to keep the bonds running in a beneficiary’s name after your death – they must be redeemed and the cash distributed.

Small estates: the statutory declaration route

If the deceased’s total NS&I savings are below £5,000, NS&I does not require probate. For estates where there is no will (intestacy) and no grant of administration, and where the next of kin is dealing with a small NS&I holding, it may be possible to claim without formal legal authority by providing a statutory declaration.

A statutory declaration is a formal written statement, sworn before a solicitor or commissioner for oaths, confirming who you are and your entitlement to the funds. It typically costs £5–£20 at a solicitor’s office and takes about 30 minutes to prepare.

NS&I retains discretion to ask for a statutory declaration for any amount, even sub-£5,000. If you are dealing with a small estate and no grant has been taken out, ask NS&I when you first contact them whether a statutory declaration will be acceptable, or whether there is a simpler process for the specific amount involved.

For amounts above £5,000, there is no alternative – a grant of representation (probate, letters of administration, or Scottish Confirmation) is required before NS&I will release funds.

Related guides

• How to notify NS&I when someone dies – full step-by-step for all NS&I account types, including which are covered by Tell Us Once (NS&I is not), Premium Bonds, Income Bonds, Savings Certificates, and ISAs
• What happens to an ISA when someone dies – including NS&I’s low £5,000 probate threshold
• What happens to savings accounts when someone dies – sole and joint accounts, bank thresholds, and FSCS protection
• What happens to a bank account when someone dies – how banks handle death, probate thresholds, and frozen accounts
• Do I need probate? – when probate is and is not required
• How long does probate take? – realistic timelines for England, Wales, Scotland, and Northern Ireland
• Inheritance tax – how an estate is valued and when tax is due