premium bonds and benefits

COCO-POPS_3
COCO-POPS_3 Posts: 20 Forumite
edited 26 March 2010 at 5:41PM in Benefits & tax credits
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Comments

  • Unity
    Unity Posts: 1,524 Forumite
    First Anniversary First Post Combo Breaker
    COCO-POPS wrote: »
    hi, just asking on behalf of a friend who dosen't have internet access.
    are premium bonds classed as savings for the purposes of claiming benefit ?

    friend has premium bonds which she purchased few years ago, not a massive amount, but has a little savings too, and is unwell enough to work at this present time, and is needing to go onto income support.
    premium bonds are £1000, and savings just over £5000, which would mean she is just over the savings limit to claim, if they are classed as savings
    thanks

    Sorry to be the bearer of bad tidings but - yes, they are classed as savings - because of course, that's what they are, even though you don't accrue interest with them.:embarasse
    Some people hear voices, some see invisible people. Others have no imagination whatsoever :D
  • seven-day-weekend
    seven-day-weekend Posts: 36,755 Forumite
    Name Dropper First Anniversary Photogenic First Post
    I don't know the answer to this, but would guess that they were counted as savings, as you can cash them in at any time.

    If I'm wrong I'm sure someone will correct me.

    If her savings are only just over the £6k, she can still claim, but her benefits will be reduced. Once her savings are under £6, she will get the full amount.
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Mortgage-free Glee!
    COCO-POPS wrote: »
    hi, just asking on behalf of a friend who dosen't have internet access.
    are premium bonds classed as savings for the purposes of claiming benefit ?

    friend has premium bonds which she purchased few years ago, not a massive amount, but has a little savings too, and is unwell enough to work at this present time, and is needing to go onto income support.
    premium bonds are £1000, and savings just over £5000, which would mean she is just over the savings limit to claim, if they are classed as savings
    thanks

    I`m afraid they do count as they are effectively just another form of saving
    the good news is that between £6,000 and £16,000 benefits are only reduced by £1 for every £250 over the 6k until you reach 16k when all means tested benefits would stop
  • Francesanne
    Francesanne Posts: 2,081 Forumite
    Combo Breaker First Post First Anniversary
    COCO-POPS wrote: »
    hi, just asking on behalf of a friend who dosen't have internet access.
    are premium bonds classed as savings for the purposes of claiming benefit ?

    friend has premium bonds which she purchased few years ago, not a massive amount, but has a little savings too, and is unwell enough to work at this present time, and is needing to go onto income support.
    premium bonds are £1000, and savings just over £5000, which would mean she is just over the savings limit to claim, if they are classed as savings
    thanks
    They do count as savings unfortunately. My elderly Mum has the grand sum of £3.00 in P.Bonds but they had to be declared when she was claiming Council Tax benefit.
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