Reader's questions: "Can you transfer NS&I Premium Bonds to someone else without having to cash them in? My niece is turning 21 and I’d like to give her my Premium Bonds."
Thanks for your question – what a nice idea for a 21st birthday present.
However, I’m afraid that you are not able to simply transfer your Premium Bonds to her. You will need to cash in the bonds you want to give her and send the money to her, so that she can apply herself.
You should be aware that if you request to encash your bonds in the last two working days of a month, NS&I will normally delay the encashment so that your bonds are in the draw for the beginning of the following month.
On encashment, your numbers would be lost and she once she has applied, she will need to hold her new bonds for a full calendar month before they are entered into the first prize draw. For example, if she buys at any time in February, her bonds will be eligible for the prize draw in April.
This means that it makes sense to buy new bonds as close to the end of a month as possible – it’s better to be earning interest elsewhere rather than sitting in the Premium Bonds for an extra couple of weeks with no chance of a prize.
If she was under 16, your niece would not be able to buy them herself, but you could give the money to either a parent, guardian or grandparent and they would be able to buy them for her.
The restriction as to which adults can buy Premium Bonds for children under the age of 16 will be removed later this year – the exact date has not been announced yet. But you will still need to be able to prove their identity and where they live – and you’ll need to nominate a parent or guardian to manage the bonds for them.
If you have a savings query that you would like answered, please email us at [email protected] or call us on 0800 011 9705 to speak to one of our savings experts.
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