Premium Bonds Max Allowance Rule

NOVAMET21

Hi,
I know there is a maximum limit of £50,000 that each individual can have in the premium bond but what happens if the prize takes the amount to over £50,000? Do we have to transfer the money to our bank account?

For example, let's say I have got £50,000 and I won £200, then do I need to transfer £200 out of my account?

MrsWenger

Hello, you set up an account linked to your Premium Bonds account and winnings are paid into that once the full allowance of £50,000 is used.

Up to the point where you have £50,000 of Premium Bonds you have the choice of any winnings being added to the Premium Bonds or being paid to the linked account.

NOVAMET21

MrsWenger said:

Hello, you set up an account linked to your Premium Bonds account and winnings are paid into that once the full allowance of £50,000 is used.

Up to the point where you have £50,000 of Premium Bonds you have the choice of any winnings being added to the Premium Bonds or being paid to the linked account.

Ah thanks. I have currently set up as re add the winning to the premium bonds but didn't know what would happen when it reaches 50k. Sounds like it will automatically transfer to the linked bank account.
Thank you

Swipe

And if you had no linked account set up they would send you a cheque in the post.

boingy

NOVAMET21 said:

Thank you. Is there any other savings account like this which are tax free?

What do people do when they max out premium bonds and their 20k tax free cash isa account?

You can put it in your pension - almost always the best option if you can afford to leave it there until you are 55-ish.
You can invest it rather than just put it in a savings account - not tax free but there are CGT and dividend allowances.
If you have a spouse (and if you trust them!) you can freely transfer any amount of money to them and they can use up their allowances PB and ISA allowances too.

Albermarle

NOVAMET21 said:

MrsWenger said:

Hello, you set up an account linked to your Premium Bonds account and winnings are paid into that once the full allowance of £50,000 is used.

Up to the point where you have £50,000 of Premium Bonds you have the choice of any winnings being added to the Premium Bonds or being paid to the linked account.

Ah thanks. I have currently set up as re add the winning to the premium bonds but didn't know what would happen when it reaches 50k. Sounds like it will automatically transfer to the linked bank account.
Thank you

The prizes arrive in your account around the 8th of the month.