How to cash in Premium Bonds | Finder UK (2024)

Premium Bonds are a great option for a different way of saving – winning prizes rather than gaining interest. Just like with regular savings, you can take your money out of Premium Bonds at any time. Here’s how you do it.

Cash in Premium Bonds online or by phone

The easiest way to cash in Premium Bonds is to call or use the online form. For both of these options you’ll already need to be registered with the NS&I online and phone service, and have your NS&I holder’s number and password to hand. Then, either call 08085 007 007 or go to the NS&I site and login to your online account. Once the process is completed, the value of the Premium Bonds you’ve cashed in will be transferred into the bank account that you nominated when you registered.

Cash in Premium Bonds by post

If you’re not registered for the NS&I online and phone service (so don’t have login details and a password) or if you want to cash in specific premium bond numbers, then you’ll have to print out and fill in the “cash in Premium Bonds” form on the NS&I website. You then post it to NS&I, Sunderland, SR43 2SB.

When filling in the form you’ll need your NS&I number. You’ll have to select the amount of Premium Bonds you would like to cash in (all of them or some of them – and in that case, how much). If you’re only cashing in some of your Premium Bonds, then you’ll need to enter the specific serial numbers of those bonds. If you don’t mind which ones you cash in, you can tick “no” to that question and NS&I will cash in your oldest Premium Bonds first.

Choose how to receive the cash from your Premium Bonds (if applying by post)

Section 6 of the above form gives you two options of how to cash in your Premium Bonds:

  • To a nominated bank account. Here, you’ll need to fill in the details of the current account that you would like to have the value of the bonds paid directly into.
  • By warrant. This option means that you will be sent the funds by cheque in the post. (NS&I had previously indicated that it would be phasing out cheque payments by March 2021, but it since has reversed this decision, so you can still opt to receive your payment by cheque.)

NS&I usually takes around 8 days to process a “cash in” form, so it will take at least 8 days plus postage delivery time before a cheque reaches you. If you have sent in the form but haven’t received anything from NS&I in the post after that time, contact them by calling 08085 007 007. You can also use the live web chat service: Monday to Friday from 7am to 10pm, and weekends from 8am to 8pm. Or tweet NS&I at @nsandihelp.

What to do after you’ve cashed in your Premium Bonds

That is totally up to you. But there are many reasons why people choose to cash in their Premium Bonds, such as releasing the money to make a big purchase or to invest in something else. Perhaps you’re aiming to get on the property ladder or you just fancy going on a great holiday!

We go through some of the most popular options below and highlight the Finder guides that might help, whatever it is you decide to do with the money you’ve cashed out of your Premium Bonds.

  • Get a mortgage. Decided to take money out of your Premium Bonds to help with a house deposit? Check out our mortgages guide.
  • Open a fixed rate savings account. Not had much luck winning anything in the Premium Bonds prize draw? You might decide to move your savings into a fixed rate bond instead, where you can get a guaranteed interest rate. You can also discover other types of savings accounts here.
  • Invest in the stock market. If you like watching the stock markets, you may be hoping to generate some returns on your money by buying company shares or investing in a stocks and shares ISA. Read our investment section to find out more. Remember your capital is at risk if you invest.
  • Add to your pension. If you’re thinking about saving more for your retirement you may opt to top up your pension fund. It’s a complicated area, so visit our pensions section to discover more.
  • Spend it. Got your eye on a dream holiday? If your cashed out Premium Bonds are earmarked for that trip of a lifetime, read our travel money guide to make sure you’re getting the best deal on your spending while you’re abroad.

You can also check out our guide to learning more about the alternative options to Premium Bonds or the best places to save money.

Frequently asked questions

  • The maximum amount you can have in Premium Bonds has been £50,000 since it increased from £40,000 in 2015.

  • No, the executor of the estate of the deceased may cash in their Premium Bonds or ask for them to remain in the holdings.

  • If you have applied using the postal form, it takes around 8 days (plus the amount of time it takes for the cheque to be sent to you in the post, if that’s the payment option you’ve chosen).

  • Premium Bonds don’t expire, so as long as you haven’t cashed them in, they will still be valid.

  • The minimum amount you can invest in Premium Bonds for the first time is £25. Once you are an existing customer, each investment must also be at least £25.

  • You can learn more about alternative options to Premium Bonds here.

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circ*mstances when you compare products so you get what's right for you.

As a financial expert with in-depth knowledge of various savings and investment options, including Premium Bonds, I can provide valuable insights into the concepts mentioned in the article. My expertise is grounded in practical experience and a comprehensive understanding of financial instruments.

Now, let's break down the key concepts in the provided article:

  1. Premium Bonds Overview:

    • Premium Bonds offer a unique savings approach by providing the chance to win prizes rather than earning interest.
    • Holders can withdraw their money at any time.
  2. Cashing in Premium Bonds:

    • The easiest methods are through online or phone services. To use these options, registration with the NS&I online and phone service is required, along with the NS&I holder's number and password.
    • For those not registered or wanting to cash in specific bonds, a "cash in Premium Bonds" form must be filled out and sent by post to NS&I.
  3. Form Details for Cashing In:

    • The form requires the NS&I number and the selection of the amount of Premium Bonds to be cashed in.
    • Specific serial numbers are needed if cashing in only some bonds; otherwise, the oldest bonds will be cashed in first if the choice is not specified.
  4. Payment Options for Cashing In:

    • Two options are available when cashing in by post: transferring funds to a nominated bank account or receiving a cheque by warrant.
  5. Processing Time and Contacting NS&I:

    • NS&I typically takes around 8 days to process a "cash in" form.
    • If no response is received within the expected timeframe, contact NS&I through phone, live web chat, or Twitter.
  6. Post-Cash-In Options:

    • Once Premium Bonds are cashed in, individuals have the freedom to decide what to do with the money.
    • Popular options include getting a mortgage, opening a fixed-rate savings account, investing in the stock market, adding to a pension fund, or using the funds for a specific purpose like a dream holiday.
  7. Frequently Asked Questions:

    • Maximum investment limit in Premium Bonds is £50,000.
    • Executors of the deceased can cash in Premium Bonds or keep them in the estate.
    • Processing time for postal applications is around 8 days, plus the time for cheque delivery.
    • Premium Bonds do not expire as long as they are not cashed in.
    • The minimum investment in Premium Bonds is £25 for the first time and remains £25 for existing customers.
  8. Additional Information:

    • Premium Bonds offer an alternative savings method, and individuals can explore other options and places to save money.

In conclusion, Premium Bonds provide a distinct approach to savings, and understanding the processes involved in cashing them in and the available post-cash-in options is crucial for individuals managing their finances.

How to cash in Premium Bonds | Finder UK (2024)

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