National Savings and Investments (NS&I), backed by the Treasury, has confirmed a new rule allowing Premium Bonds holders to cash in sums as small as £1. This move aims to provide greater flexibility for the 24 million people who hold these bonds.
Flexibility for Savers
NS&I stated that customers can withdraw all or part of their savings at any time, including amounts as low as £1. A spokesperson explained: "Premium Bonds are one of the UK's most popular savings products, offering customers the chance to win tax-free prizes each month and the flexibility to manage their savings. This includes being able to cash in all or part of their savings when they need."
Emotional Connections to Bonds
Some customers have an emotional attachment to specific Bond numbers, such as those bought as gifts for children or for special occasions. To accommodate this, NS&I allows savers to fill in a form specifying which Bonds they wish to keep when making partial withdrawals.
Prize Draw Details
About 24 million people invest in £1 Bonds, which are entered into a monthly prize draw. Tax-free prizes range from £25 up to £1 million.
Criticism Over Deceased Account Tracing
Despite these changes, NS&I faces criticism for long-running issues in tracing accounts of deceased customers. One customer told The Guardian: "It has been more than a year of hell. The bank is impossible to deal with, relying on outdated paper-based processes. No one can give helpful information. The money is my dad's inheritance; he has Alzheimer's and is in a care home. We had to take out a loan to cover his fees."
Sir Jim Harra, former HM Revenue and Customs boss, admitted that a new, more thorough process introduced this year "takes longer than before and has, unfortunately, resulted in delays to current and new claims."
