NS&I and Premium Bonds After Death

NS&I (National Savings and Investments) is a government-backed savings provider that manages products including Premium Bonds, the Direct Saver, Income Bonds, and Guaranteed Growth Bonds. For executors, NS&I has two features that catch people off guard: a notably low probate threshold, and specific rules around Premium Bonds prize draws after death. This guide explains both and covers everything you need to do to close NS&I accounts and encash Premium Bonds as part of estate administration.

How to notify NS&I of a death

NS&I has a dedicated bereavement process for all of its products. You can notify them in two main ways:

• Telephone: Call NS&I's bereavement line to speak with a specialist. This is the fastest way to begin the process.
• Online: NS&I provides an online bereavement service where you can submit a notification and upload documents without calling.

There is no NS&I high street branch network, so in-person options are not available. The telephone and online routes cover all NS&I products. When you make contact, NS&I will tell you exactly which documents they need for each product type the deceased held.

The Death Notification Service (deathnotificationservice.co.uk) does not cover NS&I, so you will need to contact NS&I directly rather than through that service.

Documents you will need

NS&I will require the following to process a bereavement claim:

• Original death certificate or certified copy issued by the register office. Order at least eight to ten certified copies when you register the death. Ordering additional copies later is more expensive and causes delays.
• Proof of your identity: a passport or driving licence for the executor or next of kin making the claim.
• Proof of your address: a utility bill or bank statement dated within the last three months.
• NS&I account or bond details: the holder's NS&I account number, Premium Bond holder's number, or bond certificate numbers where available. NS&I can trace accounts if these are not to hand, but having the numbers speeds up the process.
• Grant of Probate or Letters of Administration: required if the total NS&I holding exceeds their release threshold. NS&I will confirm whether this applies when you make contact.

The Grant of Probate is not needed to begin the notification. It is only required at the point of releasing funds, and only if the threshold is exceeded.

NS&I's probate threshold

NS&I has a significantly lower probate threshold than most high street banks. This is one of the most common surprises for executors dealing with estates that include Premium Bonds or NS&I savings accounts.

NS&I's threshold for releasing funds without a Grant of Probate is understood to be approximately £5,000, covering the combined total across all NS&I products held by the deceased. This means that even a relatively modest Premium Bonds holding could require probate before NS&I will pay out, even if every other institution in the estate is comfortably below its own threshold.

If the total NS&I holding (Premium Bonds plus any savings accounts or bonds) is below £5,000, NS&I will typically release funds on sight of the death certificate and proof of identity. Above that figure, a sealed Grant of Probate from the Probate Registry is required.

Confirm the current threshold with NS&I directly when you make contact, as these figures can change. For a comparison with other institutions, see our guide to bank probate thresholds.

What happens to direct debits and standing orders

NS&I savings products do not typically operate with direct debits in the way that current accounts do. However, some products are funded by regular standing order transfers from an external bank account.

If the deceased had a standing order set up from a bank account to contribute regularly to an NS&I product, that standing order will have been set up at the source bank, not with NS&I. You will need to cancel it at the bank holding the current account rather than through NS&I. This is a common oversight: notifying NS&I of the death does not automatically cancel a standing order set up at a separate bank.

Joint accounts and NS&I products

NS&I Premium Bonds are always held in a single name and cannot be held jointly. If the deceased held Premium Bonds, those Bonds are in the deceased's name alone and form part of the estate.

Some NS&I savings accounts (such as the Direct Saver) can be held in joint names. Where an NS&I savings account is joint, the account typically continues in the surviving account holder's name alone on sight of the death certificate, in the same way as a jointly-held bank account. No Grant of Probate is required for the joint account itself in this situation, though you still need to notify NS&I formally.

As with any joint account, the balance at the date of death may still be relevant for inheritance tax purposes depending on how the funds were contributed.

Premium Bonds prize draws: the 12-month rule

Premium Bonds continue to be entered into NS&I's monthly prize draws for up to 12 months after the date of death. Prizes won during this period, after the date of death but before the Bonds are encashed or the 12-month period expires, are paid to the estate. They do not go to NS&I.

After 12 months, NS&I automatically redeems the Bonds at face value and pays the proceeds (plus any outstanding prizes) to the estate. You do not need to take any action to trigger this: it happens automatically once the 12-month period expires.

You can request early encashment of the Premium Bonds at any point before the 12 months is up, but doing so ends prize eligibility from the point of encashment. If the Bonds are encashed before the 12-month period, no further prizes will be paid, and only the face value of the Bonds will be returned to the estate.

In practice, whether it is worth waiting for the full 12 months depends on the size of the holding. Larger holdings have a greater expected prize value over the remaining months. NS&I's bereavement team can advise on this when you make contact.

How long does it take

The NS&I bereavement process can take longer than equivalent processes at high street banks, partly because NS&I operates entirely by post and telephone rather than through a branch network.

• Below the probate threshold: NS&I will typically process the claim and release funds within a few weeks of receiving the completed claim form and supporting documents by post.
• Above the probate threshold: You will need to wait for the Grant of Probate, which can take several months depending on the estate. Once NS&I receives the sealed grant, they will process the release within a few weeks.
• Premium Bonds held for the 12-month period: If you choose to keep the Bonds in the prize draw for the full 12 months, NS&I will automatically redeem them and pay the proceeds to the estate at that point.

NS&I bereavement contact details

NS&I does not have branches. Contact their dedicated bereavement team by telephone or online:

• Telephone: 08085 007 007
• Online: nsandi.com/bereavement

Phone numbers and online addresses can change. Confirm current contact details on NS&I's website before calling. NS&I's bereavement team can advise on all product types and will send you the relevant claim forms for each product the deceased held.

For a comparison of probate thresholds across all major UK banks and building societies, see our guide to bank probate thresholds. For the full process of closing accounts and transferring funds once you have authority, see closing bank accounts after death. Our guides on notifying banks after death and do I need probate? are also relevant at this stage of estate administration.