What happens to Premium Bonds when someone dies

Last updated 25 March 2026

Premium Bonds are held by around 24 million people in the UK, making them one of the most common assets executors encounter during estate administration. This guide explains exactly what happens to Premium Bonds after a death — the 12-month prize window, how to claim, the probate threshold that catches many families off guard, and what you can and cannot do with the bonds themselves.

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 must be 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) if the deceased’s total NS&I savings exceed £5,000. This threshold is far lower than most banks, and it catches many families by surprise.

The 12-month prize window

Premium Bonds remain in the monthly prize draw for up to 12 months after the date of death — not 12 months after you notify NS&I, but 12 months from when the person died. This means time is already passing.

As executor or administrator, you have a choice:

OptionWhat it means
Cash in immediatelyBonds are removed from the draw. You receive the face value of all bonds. Any prizes won before NS&I was notified are forwarded to you.
Keep in the drawBonds continue to enter monthly prize draws until you claim or until 12 months have elapsed. Any prizes won are paid by warrant (similar to a cheque) to the executor, and added to the estate.

There is no right or wrong decision — it depends on how quickly the estate needs to be settled and whether you consider the prize draws worth the wait. The face value of the bonds does not change; it is always repaid in full.

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

Prizes do not expire. Unclaimed prizes from before the death — prizes that were won but never collected — do not lapse. They remain claimable through NS&I’s prize checker. As of March 2026, NS&I holds over £116 million in unclaimed prizes across all Premium Bonds accounts, some going back many years. Worth checking.

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

What happens after 12 months

If the 12-month prize window passes without the bonds being claimed, NS&I automatically removes them from the prize draw and transfers the invested capital to the NS&I Unclaimed Premium Bonds Account.

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

If you are administering an estate and notice that more than 12 months have elapsed since the death, contact NS&I directly on 08085 007 007 to begin the claim process 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 probate (in England and Wales), letters of administration (if there is no will), or Confirmation (in Scotland) before releasing any funds.

This threshold applies to all NS&I products combined — not Premium Bonds alone. A person 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:

InstitutionProbate threshold
Barclays£50,000
HSBC£50,000
Lloyds Bank£50,000
Nationwide£50,000
Santander£50,000
NatWest~£25,000
Metro Bank£25,000
Co-op Bank£50,000
NS&I£5,000

An estate that would be entirely straightforward at a high street bank can require full probate documentation at NS&I. This is a genuine and common trap — many executors do not expect it.

NS&I’s policy also states that the Director of Savings retains 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 March 2026)

If you need to apply for probate, you can apply yourself through gov.uk/applying-for-probate or use a probate solicitor. See our guide to how long probate takes for a realistic sense of the timeline.

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. The sooner you notify, the sooner the 12-month prize window is properly registered. Delaying notification does not extend the 12-month period — the clock starts from the date of death, not the date of notification.

  2. Contact NS&I:

    • Phone: 08085 007 007 (free from UK landlines and mobiles; Monday–Friday 8am–8pm, Saturday–Sunday 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 number (if known — found on any NS&I correspondence or old prize warrants)
    • Your bank account details (for the repayment to be made to)
    • Grant of probate or letters of administration (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 will ask you this as part of the claim process.

  5. Wait for NS&I to process the claim. NS&I aims to respond within approximately 11 working days of receiving all completed documentation.

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

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

Can Premium Bonds be inherited?

Premium Bonds cannot be transferred from one person to another. They cannot be left to a named beneficiary in a will in the sense of being passed on as Premium Bonds. What happens is:

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

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

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 will require a grant of probate before releasing the funds. You will need to apply to the Probate Registry — either through the government’s online service at gov.uk/applying-for-probate or through a solicitor. NS&I will not release the money or close the bonds until probate is granted.

The bonds do remain in the prize draw during this period (up to the 12-month limit from the date of death), so there is no financial penalty to the estate from the time taken by probate — provided the 12-month window has not yet expired.

How do I find out if someone had Premium Bonds?

There are three routes:

  1. Contact NS&I directly. Call 08085 007 007 and explain that you are the executor of the estate. NS&I can trace accounts held 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 tracing service at mylostaccount.org.uk covers NS&I accounts as well as bank accounts and building society accounts.

  3. Check NS&I correspondence. Premium Bonds holders receive a holder number, which appears on any prize warrants or account statements. Look through the deceased’s papers for anything from NS&I or National Savings.

Are Premium Bonds prizes taxable after death?

Premium Bonds prizes are always tax-free — for the deceased and for the estate. A prize won after death, during the 12-month window, is paid to the estate free of income tax. However, the face value of the Premium Bonds is part of the estate for inheritance tax purposes.

What if Premium Bonds were held jointly?

Premium Bonds cannot be held jointly. Every Premium Bonds account belongs to a single named individual. If you believed the deceased held bonds jointly, this is not possible — the bonds will be in one person’s name alone.

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.

For estates above £5,000: the main delay is obtaining probate, which takes an average of 16 weeks in England and Wales for a straightforward application (source: gov.uk/applying-for-probate). Once NS&I receives the grant, the claim is processed within approximately 11 working days.

What if there are unclaimed prizes?

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

As of March 2026, NS&I holds over £116 million in unclaimed Premium Bonds prizes (source: nsandi.com). Many of these belong to people who lost track of older bonds. Before closing the estate, it is worth running a prize check — especially if the deceased had held bonds for many years.