Premium Bonds, NS&I and savings
Guidance from Estate Advisory Group
NS&I has its own process, and fixed-term products have their own traps.
NS&I and Premium Bonds
- Complete NS&I's attorney or third-party registration and send a certified copy of the LPA.
- Ask for prize payments to be paid into the donor's bank account rather than reinvested, so the money is visible.
- You can cash in Premium Bonds for the donor's benefit, but you cannot buy them as a gift for someone else.
- Keep the holder's number and prize statements with your records.
Fixed-rate and notice accounts
- Some providers will not let an attorney reinvest at maturity — plan ahead of the maturity date.
- Early closure penalties may still be worth paying if the donor needs the cash for care.
- Consolidating dozens of small accounts into two or three makes the estate manageable and your records defensible.
- Keep balances within FSCS limits per institution.
What you cannot do
No investing for other people
Savings must be held in the donor's name for the donor's benefit. Moving money into a joint account with you, or into an account for a grandchild, is a gift and needs the Court of Protection.
Common questions
Can I open a new savings account for the donor?
Yes, in the donor's sole name, where it is in their interests. Many providers have an attorney application route.
Are Premium Bond prizes taxable?
No, but they are part of the donor's income for care fee assessments in some circumstances.
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This is general information about how Lasting Powers of Attorney work in England and Wales. It is not legal advice about your situation. What we do and do not do.
Published by Estate Advisory Group