How to value Premium Bonds

Every Premium Bond is worth £1. Premium Bonds retain their face value and do not attract interest.

In other words, if the deceased held 50 Premium Bonds, the total value of his or her Premium Bonds is £50. For this reason, no formal probate valuation of Premium Bonds is required.

Notifying NS&I

Although Premium Bonds do not have to be valued, NS&I should be notified of the death of the holder.

You can write to NS&I direct. It is best to complete and send the “Death of a holder of national savings” form (NS&I 904). 

Repayment and encashment

Unlike all other types of NS&I accounts and policies, Premium Bonds cannot be transferred to a beneficiary of the estate. They must be encashed.

When NS&I receives the NS&I 904 form and the grant of representation (if it is being obtained) it will send the value of the Bonds in cash to the person nominated on the form, unless the Bonds are to remain active.

Premium Bonds can remain active for up to 12 months following the death, in the hope that they are successful in the Premium Bonds prize draw. After 12 months, they must be encashed.

The cash value of the Bonds should then be distributed according to the will or intestacy.