How Long Does It Take To Cash In Premium Bonds

Government bonds are popular instruments for people of all ages to save for the future. Such an instrument offers safe investment options backed by government schemes with a low risk of losing money.

Many such options also offer tax rebates on earnings, but the average returns can be very low, up to 1.4% on premium bonds, compared to inflation over 2%. For this reason, such investments will be able to buy fewer goods and services, and one may not earn more even working hard.

Alternatively, stocks and shares ISA are tax-efficient as they can deliver impressive returns in the long run, while the annualized returns can be in double digits.

Additionally, no tax is charged on such investments, and the net returns are equal to gross returns. The risk is very high in such options, but it offers wide diversification where a proper investment can reduce the overall risk of capital loss.

What are premium bonds, and how it works?

• Premium bonds are offered by the NS&I, where one can earn regular interest or dividends, and one can get a prize through a draw to earn in the range of 25 to 1 million tax-free.

• To start, one needs to invest at least 25, and one can keep buying bonds until the maximum holding reaches 50,000.

• The investor gets a bond number for everyone invested amount, and all the numbers are included in the monthly draw.

• One can buy it for a relative or children for a guaranteed return and a regular income.

• The investment is secure, and one can get tax-free earnings.

How to check you have won?

The NS&I sai said 76.7 per cent of investment bonds were purchased between 2010 and 2019. The draw has two top prizes: six people will get 100,000, 11 will get 50,000, and 24 will earn 25,000.

The owner of the bond numbers needs to check the prizes on the websites where the number is either 11, 10, 9 or 8 digits long, followed by a letter. One can download the premium bonds checker app to check the draw results. If the person wins, Agent Million will visit to pay, or you can email the NS&I to claim the prize.

One can also phone and ask more about it- like the past address or when or where you bought the bonds.

How to claim the cash?

• Cash online or by phone.

• Fill in the premium bond cash in form and select how you would like to receive the cash.

• In the case of the nominated account, one may be asked to select the current account where the bond amount is paid directly.

• One can also get the amount of cash by cheque in the post. It takes not more than eight days to process the cash-in form, and it may take eight plus more days to clear the claim request.

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