Premium Bonds, NS&I and savings
Guidance from Estate Advisory Group
Written and legally reviewed by Ramani Gill TEP, Solicitor and private client practitioner·Last reviewed 13 August 2026
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.
Worked example: Janet is attorney for her mother Iris, who holds £30,000 in Premium Bonds and a matured fixed-rate bond at another provider. Janet registers with NS&I as attorney, redirects future prizes to Iris's current account so they are visible in her bank statements, and, because Iris now needs regular income for care fees rather than a small chance of a large prize, cashes in half the bonds and moves the money into an easy-access savings account paying a known rate of interest.
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.
Comparing common savings products
| Product | Attorney access | Watch out for |
|---|---|---|
| Premium Bonds | Attorney registration with NS&I | No new bonds can be bought as a gift to someone else |
| Easy-access savings | Usually straightforward attorney registration | Rates often fall after an introductory period |
| Fixed-rate bonds | Attorney can usually operate but not always renew | Reinvestment at maturity may need a fresh application |
| Cash ISA | Attorney can manage, cannot open a new one for the donor in most cases | Check the provider's specific ISA rules |
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.
Bringing scattered accounts together
Many donors accumulate small accounts over decades — a building society passbook opened in the 1980s, a matured bond nobody closed, a credit union account from a former workplace. As attorney it is reasonable, and often expected of you, to consolidate these into two or three accounts you can actually monitor, provided each institution's balance stays within the £85,000 FSCS protection limit. Keep a note of any account you close, the closing balance and where the money went.
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.
Can I cash in the donor's whole Premium Bonds holding?
Yes if it is in their interests — for example to fund care fees — but record why, since it gives up future prize chances.
What happens to NS&I accounts when the donor dies?
NS&I is notified as part of the estate administration; your authority as attorney ends immediately on death, and the executor takes over.
Read next
Where this fits
This page is part of Money, tax and property. The pages below take it further.
- Property & Financial Affairs LPA
The LP1F: money, bills, savings, property and everything a bank will ask for.
- Make an LPA online
The whole journey end to end: questions, documents, signing and registration.
Review and sources
Reviewed by Ramani Gill TEP, Solicitor and private client practitioner. Last reviewed 13 August 2026. We recheck fees, forms and Office of the Public Guardian guidance whenever they change — see our editorial policy.
Official sources
Ready to make your LPA?
Choose one LPA or both, then start online for £49 per LPA.
The Office of the Public Guardian charges a separate £92 to register each LPA.
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