are premium bonds instant access?

pjread

Contemplating buying a few k of them over the next couple of months, but the cash is at least potentially earmarked for "if I need to reduce mortgage balance to get a better LTV early 2015" - can I cash them out with no notice and no significant wait for funds if I need to?

Sorry if this is obvious, the ns&i site didn't seem overly clear...

innovate

They call it cashing in, not cashing out

Cashing in
You can cash in your Bonds whenever you like without having to give us notice.

Cashing in

46. Subject to paragraph 52, a Bond holder can cash in their Bonds at any time, for any reason, without charge. In certain limited circumstances (such as where the Bond holder lacks capacity and an application is made by their deputy), we may also accept requests for repayment from persons other than the Bond holder.

47. Bonds purchased by cheque or debit card can only be cashed in after payment has cleared. However, in certain circumstances, we may allow Bonds purchased by debit card to be cashed in before the payment has cleared. If we so allow, we will repay the sum requested to the debit card from which the deposit was made.

48. It will normally take seven banking days from the date of purchase for payments to clear. For example, if we receive a cheque on a Monday, the payment will be cleared on the Tuesday of the following week. Payments made at a post office will normally take two banking days longer than the timescale set out above and will be available for withdrawal from the ninth banking day. For example, if a cheque is paid at a post office branch on a Monday, the payment will be cleared on the Thursday of the following week. One additional day on top of these timescales should be allowed for each English bank holiday. The same clearance periods apply for debit card payments. Payment clearance may exceed the timescales given above if the drawer of the payment has recently switched their banking service to another provider.

49. As Bonds are issued in units of £1, the minimum amount that can be cashed in at any one time is £1.

50. For internet or telephone applications to cash in made via the Service, Bond numbers will automatically be selected on a “first in, first out” basis (the oldest Bond numbers will be selected first and the most recent Bond numbers selected last). Payment will be made by electronic transfer to the nominated bank account.

51. For postal applications to cash in, payment will normally be made by electronic transfer to the nominated bank account. However, in certain circumstances we may accept requests for payment to be made by crossed warrant (see paragraph 61).

52. To make sure that Bonds remain eligible for the prize draw for the maximum period of time applications to cash in received during the last two banking days of a month will not be processed until one banking day after the first day of the next month. Consequently there may be a delay of up to three banking days in us issuing the payment.

http://www.nsandi.com/savings-premium-bonds

bigadaj

pjread wrote: »

Contemplating buying a few k of them over the next couple of months, but the cash is at least potentially earmarked for "if I need to reduce mortgage balance to get a better LTV early 2015" - can I cash them out with no notice and no significant wait for funds if I need to?

Sorry if this is obvious, the ns&i site didn't seem overly clear...

Site seems to indicate you could wait up to two weeks. You also don't get into the draw for at least a month when investing, closer to two if you out money in at the start of the month so this would reduce returns or chances of wins, dependent on your view.

G_M

bigadaj wrote: »

Site seems to indicate you could wait up to two weeks. You also don't get into the draw for at least a month when investing, closer to two if you out money in at the start of the month so this would reduce returns or chances of wins, dependent on your view.

So what is the optimal way to buy, and the optimal date to do so, in order to minimise wait before funds are enetered into a draw whilst maximising returns from those funds from the account from which they are paid?

MCF

Hi, the best time to buy them is toward the end of the month as you have to wait a full calendar month before they can be entered into the draw. Also, I just found out an easy way to buy them as long as you have an existing holders number, you can buy them online directly with a debit card but there's a page in Nsandi website to explain exactly how to do it.:j

Wheres_My_Cashback

G_M wrote: »

So what is the optimal way to buy, and the optimal date to do so, in order to minimise wait before funds are enetered into a draw whilst maximising returns from those funds from the account from which they are paid?

Over the phone with a debit card between the 28th-31st of the month.

Archi_Bald

Wheres_My_Cashback wrote: »

Over the phone with a debit card between the 28th-31st of the month.

There's no 31st this month, and depositing on the very last day of the month is cutting it a bit fine.

If you have online access, you can make a deposit with your debit card. Your balance goes up immediately but it seems to take a day before your current account gets debited.

Ifts

Wheres_My_Cashback wrote: »

Over the phone with a debit card between the 28th-31st of the month.

Same here but instead of over the phone I log in to my NS&I account and buy them on the last day of the month using my debit card.

Ever since Ive registered with NS&I to use their online service Ive bought them on the last day of the month using my debit card, never had any problems - they give you a receipt there and then confirming the date of purchase.

pjread

Thanks chaps, I'll sort out an online account then

beedeedee

Many of us have "lucky" blocks of PB, which seem to win more often than others.(Not very statistical - but they do)! To hang onto these, you need to withdraw by post, then you can specify which numbers to cash in, otherwise they'll just make it the older ones first...........

firefox1956

Be aware that it might take a week or 10 days to set up an online account.
The send you a number that is different to your PB Holders Number & then send you a password.
All done by snail mail..........
HTH