Premium Bonds

Bumpythegreat

My mother in law now aged 96 has a substantial holding of Premium Bonds. In view of her age, my wife, deals with any admin and also checks and ensures that 'wins' are received. Prior to receiving wins for February 2019 my mother in law received a letter from NS&I that was confusing to say the least. It enclosed a payable order for £25 and stated that the 'the prize has been reallocated to you because the original winner was not eligible to receive it'. This was followed by the usual 'waffle' about increasing holdings etc. As a careful check of mother in law's records did not indicate outstanding payments my wife rang NS&I to ask for an explanation. The response from NS&I was guarded in the extreme and only after significant pressure did NS&I say that some winners were not eligible to receive wins and a decision was taken to reallocate these wins on an 'ad hoc' basis to other Bond Holders. This seemed and still seems strange and we wonder whether anyone has also experienced this situation. My understanding is that unclaimed winning Bonds remain in the 'pot' until claimed so how can a winning bond prize be reallocated to someone else. Can anyone explain?

greenglide

Because it isn't "unclaimed", that is not what they have said.


It sounds, to me, that for whatever reason the person who won isn't entitled to the win - fraud, whatever.


It the winning bond shouldn't have been in the draw in the first place then giving the money to the next in line would seem reasonable.


Maybe they draw some extra numbers to hold for this precise reason? I would!

greenglide

T'internet says that when a bond holder dies the bonds can remain in the draw for up to a year and the estate gets the prizes.


Over a year and they are not allowed to get the prizes. When NS&I are informed of the death they reallocate any prizes they were not entitled to

https://www.thisismoney.co.uk/money/diyinvesting/article-5914955/THE-PRUDENT-INVESTOR-won-100k-Premium-Bond-prize-claim.html

badger09

Could the winning bond have belonged to your (presumably now deceased) father in law?

DennisTenus

How on earth could you commit fraud with premium bonds? I just don't see how that could be possible, unless you or someone you knew worked NS&I and even then I bet it's all audited etc

polymaff

I've received a couple of these reallocation prizes - very welcome.


That was a year or two ago - and there have been no repercussions, so it all seems to be legitimate.

polymaff

DennisTenus wrote: »

How on earth could you commit fraud with premium bonds?

I always thought that that was NS&I's own speciality.

DennisTenus

polymaff wrote: »

I've received a couple of these reallocation prizes - very welcome.


That was a year or two ago - and there have been no repercussions, so it all seems to be legitimate.

Oh do they tell you they are reallocation prizes?

londoninvestor

DennisTenus wrote: »

How on earth could you commit fraud with premium bonds?

I'm sure the conspiracy theorists will be along soon with lengthy answers to this

greenglide

Buy premium bonds with money that isn't yours?


The most likely reason would seem to be that the holder has died more than 12 months ago and the estate isn't allowed to claim the winnings.

[Deleted User]

DennisTenus wrote: »

How on earth could you commit fraud with premium bonds? I just don't see how that could be possible, unless you or someone you knew worked NS&I and even then I bet it's all audited etc

One thing comes to mind: If you been involved in fraudalent activity (like scamming people, drug dealing earnings, etc), you subsequently lost your court case, then the police will come after your estate, they will seize your bank accounts and may as well seize your Premium Bonds and their coupons.