Declare Premium Bonds -affect claim?

GerraWriggleOn

Hiya, I'm just filling my forms in for benefit, and it asks about premium bonds. Im just about to cash in one to cover a bank overdraft, leaving me with £10 thousand in bonds in my name.


As lucky as I am to have this, this was/is inheritance meant to be put away for the future, so not too sure where I stand?

thanks for your help, i've had a good look around but can't seem to see anything.

skintandscared_2

You declare it. It doesn't really matter what your "intention" is for the bonds. It is easily accessible funds (mine took 5 days to cash in and arrive in my bank account) and it should be counted as savings/funds available to you. I believe the upper limit on savings is £16k so you won't lose all your benefit entitlement, just a pro-rata amount on the amount you have above £6k.

GerraWriggleOn

thanks for that!
just after a bit of clarification for peace of mind!

rogerblack

GerraWriggleOn wrote: »

thanks for that!
just after a bit of clarification for peace of mind!

Are the bank demanding immediate repayment of the overdraft?
If they are, then you can repay that debt without problems.
If they aren't, then you may be treated as still having the money you used to repay the debt - so if you pay off 10K, you may be treated as if you still had 10K.

Are the bank aware that you are on benefits?

skintandscared_2

Good point. How much are you cashing in to pay off the overdraft? Is it more than £6k?

GerraWriggleOn

I'm cashing in a £5thousand bond to pay off a £3000 overdraft and the fees from this month, as I can't cope with the monthly fees as they stand so would rather pay it off then it's over and done with.

The remainder is owed to my flatmate who's been paying for my rent/food while I haven't been able to afford to do so.

So that would leave me with £10thousand in bonds.

The bank aren't aware of anything really- I haven't claimed before- just in the process of filling out forms etc.

real1314

GerraWriggleOn wrote: »

I'm cashing in a £5thousand bond to pay off a £3000 overdraft and the fees from this month, as I can't cope with the monthly fees as they stand so would rather pay it off then it's over and done with.

The remainder is owed to my flatmate who's been paying for my rent/food while I haven't been able to afford to do so.

So that would leave me with £10thousand in bonds.

The bank aren't aware of anything really- I haven't claimed before- just in the process of filling out forms etc.

You may well have a problem. You presently have around £15k of premium bonds, but do you have any other savings? :cool:

rogerblack

real1314 wrote: »

You may well have a problem. You presently have around £15k of premium bonds, but do you have any other savings? :cool:

If these premium bonds are just 15K of premium bonds - and they are not - say - 100 quid of premium bonds, and a big recent win - then it's likely that the OP was never entitled to means-tested benefits (if they had a total of 16K of savings) and any payments of means tested benefits may need repaid.
If they never had 1K of other savings, then their benefit will be severely affected (most means tested benefits will be reduced by 36/week - which means CTB for example goes away, as does JSA or whatever)

This assumes the OP is claiming income-related benefits - if they are on contributory ones, those are not affected.

skintandscared_2

From reading the OP's other thread, it looks like he's been working self-employed, but hasn't been making any money. He hasn't been claiming any benefits.

OP if I were you I think I'd cash in a few more of those bonds, get yourself the deposit for somewhere to live and start over somewhere new, with a paid job. You live with your ex but say you can't afford to leave. I don't think you would be seen as depriving yourself of savings/capital by just renting somewhere to live! Don't be thinking too long and hard about the bonds as your "inheritance". You are not long out of uni and have a lot of life to live before retirement looms. Plenty of time to build a new life and get some savings behind you.

My advice, for the sake of your mental health and your future, get out from under that roof with your ex, get a place, new job and start afresh. Good luck to you.

paddedjohn

op, you say the bonds are for your future, well guess what? the future is now and you need the money.