Remove ads

Introducing the LemonFools Personal Finance Calculators

Premium Bonds

kempiejon
Lemon Slice
Posts: 709
Joined: November 5th, 2016, 10:30 am
Has thanked: 4 times
Been thanked: 108 times

Re: Premium Bonds

#130836

Postby kempiejon » April 9th, 2018, 5:07 am

Bouleversee wrote:and when I pop my clogs NS&I will, I believe, release it to pay tax due on my estate before probate is granted, a huge consolation.


I'm not sure you can count on that see https://www.nsandi.com/files/published_ ... s-form.pdf
We will let you know if we need a Grant of Representation (also known as a Grant of Probate or Grant of Letters of Administration)
once we receive your completed form. We may ask for this if the customer’s total NS&I savings are £5,000 or over. The Director of
Savings also reserves the right to request a Grant of Representation for a claim of any value.

Bouleversee
Lemon Quarter
Posts: 1579
Joined: November 8th, 2016, 5:01 pm
Has thanked: 245 times
Been thanked: 175 times

Re: Premium Bonds

#130860

Postby Bouleversee » April 9th, 2018, 9:20 am

kempiejon wrote:
Bouleversee wrote:and when I pop my clogs NS&I will, I believe, release it to pay tax due on my estate before probate is granted, a huge consolation.


I'm not sure you can count on that see https://www.nsandi.com/files/published_ ... s-form.pdf
We will let you know if we need a Grant of Representation (also known as a Grant of Probate or Grant of Letters of Administration)
once we receive your completed form. We may ask for this if the customer’s total NS&I savings are £5,000 or over. The Director of
Savings also reserves the right to request a Grant of Representation for a claim of any value.


I thought I had established that NS&I would pay the proceeds of investments directly to HMRC to pay IHT tax due on an estates, thereby reducing the amount that would need to be paid in order to obtain probate, once that amount had been determined. I wasn't talking about paying it to executors/beneficiaries directly. However, I will check again if you think I am mistaken but it won't be today.

kempiejon
Lemon Slice
Posts: 709
Joined: November 5th, 2016, 10:30 am
Has thanked: 4 times
Been thanked: 108 times

Re: Premium Bonds

#130870

Postby kempiejon » April 9th, 2018, 10:17 am

Bouleversee wrote:
I thought I had established that NS&I would pay the proceeds of investments directly to HMRC to pay IHT tax due on an estates, thereby reducing the amount that would need to be paid in order to obtain probate, once that amount had been determined. I wasn't talking about paying it to executors/beneficiaries directly. However, I will check again if you think I am mistaken but it won't be today.


Ah sorry Bouleverse, I misunderstood the gist of your post. I knew nothing about paying directly to HMRC for IHT settlement you it looks like you are correct as per this link.
https://www.gov.uk/paying-inheritance-t ... nvestments "You can ask National Savings and Investments (NS&I) to pay money from the deceased’s accounts or investments to HM Revenue and Customs (HMRC). You’ll have to send documents to both organisations to pay a bill this way."

Bouleversee
Lemon Quarter
Posts: 1579
Joined: November 8th, 2016, 5:01 pm
Has thanked: 245 times
Been thanked: 175 times

Re: Premium Bonds

#130872

Postby Bouleversee » April 9th, 2018, 10:43 am

kempiejon wrote:
Bouleversee wrote:
I thought I had established that NS&I would pay the proceeds of investments directly to HMRC to pay IHT tax due on an estates, thereby reducing the amount that would need to be paid in order to obtain probate, once that amount had been determined. I wasn't talking about paying it to executors/beneficiaries directly. However, I will check again if you think I am mistaken but it won't be today.


Ah sorry Bouleverse, I misunderstood the gist of your post. I knew nothing about paying directly to HMRC for IHT settlement you it looks like you are correct as per this link.
https://www.gov.uk/paying-inheritance-t ... nvestments "You can ask National Savings and Investments (NS&I) to pay money from the deceased’s accounts or investments to HM Revenue and Customs (HMRC). You’ll have to send documents to both organisations to pay a bill this way."


Thanks, kempiejon. I thought I must be complelely losing my marbles as well as my memory; well on the way! I meant to say "thereby reducing the amount that might need to be BORROWED to pay IHT in order to obtain probate", not that it would make very much difference. I wonder why they say one shouldn't pay this way if one needs to obtain probate quickly.

PinkDalek
Lemon Quarter
Posts: 2768
Joined: November 4th, 2016, 1:12 pm
Has thanked: 567 times
Been thanked: 585 times

Re: Premium Bonds

#130912

Postby PinkDalek » April 9th, 2018, 1:42 pm

Bouleversee wrote:... I wonder why they say one shouldn't pay this way if one needs to obtain probate quickly.


Possibly in view of the later "HMRC will contact NS&I and ask for the money to be transferred. This can take up to 4 weeks." which I don't think is a long time in the scheme of things.

Bouleversee
Lemon Quarter
Posts: 1579
Joined: November 8th, 2016, 5:01 pm
Has thanked: 245 times
Been thanked: 175 times

Re: Premium Bonds

#130913

Postby Bouleversee » April 9th, 2018, 1:44 pm

Thanks, PD. Nor do I.

Bouleversee
Lemon Quarter
Posts: 1579
Joined: November 8th, 2016, 5:01 pm
Has thanked: 245 times
Been thanked: 175 times

Re: Premium Bonds

#136310

Postby Bouleversee » May 2nd, 2018, 1:21 pm

3 x £25 prizes this month. Better than nothing but still not marvellous.

PinkDalek
Lemon Quarter
Posts: 2768
Joined: November 4th, 2016, 1:12 pm
Has thanked: 567 times
Been thanked: 585 times

Re: Premium Bonds

#136314

Postby PinkDalek » May 2nd, 2018, 1:30 pm

Bouleversee wrote:3 x £25 prizes this month. Better than nothing but still not marvellous.


Thanks for the prompt, 5 X £25 for me. No doubt we'll keep a running tab to see how the year pans out!

CryptoPlankton
Lemon Slice
Posts: 325
Joined: November 4th, 2016, 12:12 pm
Has thanked: 421 times
Been thanked: 219 times

Re: Premium Bonds

#136326

Postby CryptoPlankton » May 2nd, 2018, 2:04 pm

Bouleversee wrote:3 x £25 prizes this month. Better than nothing but still not marvellous.

You do make me smile, Bouleversee - your positivity permeates the Lemon Fool like a refreshing breeze on a hot summer's day :)

CP (2 x £25)

AleisterCrowley
Lemon Quarter
Posts: 2598
Joined: November 4th, 2016, 11:35 am
Has thanked: 486 times
Been thanked: 518 times

Re: Premium Bonds

#136338

Postby AleisterCrowley » May 2nd, 2018, 2:33 pm

£100,000

...is one of the many prizes I didn't win. I suspect 1 x £25 at best, No high value winners in Shropshire this month

swill453
Lemon Quarter
Posts: 1604
Joined: November 4th, 2016, 6:11 pm
Has thanked: 73 times
Been thanked: 343 times

Re: Premium Bonds

#136363

Postby swill453 » May 2nd, 2018, 4:13 pm

swill453 wrote:In the 7 months my wife and I have had £70,000, we've won 5 months at £75, one month at £100 and one month at £50.

So averaging £75, which is almost exactly the stated 1.4% return. Surprised how consistent it is.

Another £75. Still annoyingly, coincidentally, consistent.

Scott.

AleisterCrowley
Lemon Quarter
Posts: 2598
Joined: November 4th, 2016, 11:35 am
Has thanked: 486 times
Been thanked: 518 times

Re: Premium Bonds

#136461

Postby AleisterCrowley » May 2nd, 2018, 10:02 pm

Hmm, £50 (2 x £25)
That's £175 this year so far on a starting value of £12,386.
I make that 1.41% with 7 draws to go. With average luck going forward, should be a good year (!!!)
I only managed 1.43% for the whole of 2017

Mike88
Lemon Slice
Posts: 258
Joined: November 4th, 2016, 6:17 pm
Has thanked: 30 times
Been thanked: 46 times

Re: Premium Bonds

#136522

Postby Mike88 » May 3rd, 2018, 10:14 am

I must be one of the unluckiest on here - £18000 in bonds held for well over a year and only 2 x £25 in winnings.

PinkDalek
Lemon Quarter
Posts: 2768
Joined: November 4th, 2016, 1:12 pm
Has thanked: 567 times
Been thanked: 585 times

Re: Premium Bonds

#143076

Postby PinkDalek » June 2nd, 2018, 2:50 pm

Bouleversee wrote:3 x £25 prizes this month. Better than nothing but still not marvellous.


Premium Bonds
Have you won?
June's results
https://www.nsandi.com/

Another 5 X £25 for me. This won't last!

Bouleversee
Lemon Quarter
Posts: 1579
Joined: November 8th, 2016, 5:01 pm
Has thanked: 245 times
Been thanked: 175 times

Re: Premium Bonds

#143090

Postby Bouleversee » June 2nd, 2018, 4:15 pm

Congrats, PD. That should perk you up. The results are out earlier than usual this month, aren't they? 1 miserable £25 for me; hardly merited the drum roll! The joke is that every month I'm convinced that this time it will be the biggy but of course it never is. Never mind. Back to the gardening. I keep hoping I'll win enough to pay a proper gardener. No help at all at the moment.

Mike88
Lemon Slice
Posts: 258
Joined: November 4th, 2016, 6:17 pm
Has thanked: 30 times
Been thanked: 46 times

Re: Premium Bonds

#143096

Postby Mike88 » June 2nd, 2018, 4:45 pm

Nothing again for me. It seems I am subsidising other bond holders.

AleisterCrowley
Lemon Quarter
Posts: 2598
Joined: November 4th, 2016, 11:35 am
Has thanked: 486 times
Been thanked: 518 times

Re: Premium Bonds

#143097

Postby AleisterCrowley » June 2nd, 2018, 4:48 pm

I was most surprised yesterday - I went to check the high value winners and the bond checker for June was available. Usually takes several working days.
Another £25 for me...Not grumbling- about 1.6% ytd?

swill453
Lemon Quarter
Posts: 1604
Joined: November 4th, 2016, 6:11 pm
Has thanked: 73 times
Been thanked: 343 times

Re: Premium Bonds

#143108

Postby swill453 » June 2nd, 2018, 5:46 pm

swill453 wrote:
swill453 wrote:In the 7 months my wife and I have had £70,000, we've won 5 months at £75, one month at £100 and one month at £50.

So averaging £75, which is almost exactly the stated 1.4% return. Surprised how consistent it is.

Another £75. Still annoyingly, coincidentally, consistent.

Another £75. Still annoyingly, coincidentally, consistent.

Scott.

melonfool
Lemon Quarter
Posts: 2469
Joined: November 4th, 2016, 11:18 am
Has thanked: 733 times
Been thanked: 386 times

Re: Premium Bonds

#143375

Postby melonfool » June 4th, 2018, 12:13 am

Quick question - if you have the max in PBs (£35k per person?) then wins presumably have to be collected in cash, not buying new bonds?

Parents have £450k of cash, of which £250k is doing nothing at all. They won't invest ('too old' - they have a point, father being 81, mother 78, they have no 'long term horizon') and won't do jiggery pokery with layers of regular savers and different accounts (won't bank online and don't want the complexity, understandably). They don't need the money at all - they still save monthly from their pension income.

I was going to offer to sort out PBs for them. Be nice if they didn't then get a load of cheques they'd need to take to the bank.

Oh, also, if they buy PBs for their grandchild, presumably that is another £35k limit? And counts as a gift for potential IHT purposes?

ta

Mel

PinkDalek
Lemon Quarter
Posts: 2768
Joined: November 4th, 2016, 1:12 pm
Has thanked: 567 times
Been thanked: 585 times

Re: Premium Bonds

#143377

Postby PinkDalek » June 4th, 2018, 12:31 am

melonfool wrote:Quick question - if you have the max in PBs (£35k per person?) then wins presumably have to be collected in cash, not buying new bonds? … I was going to offer to sort out PBs for them. Be nice if they didn't then get a load of cheques they'd need to take to the bank.


Some of the detail is in the link I gave earlier but more here:

https://www.nsandi.com/system/files/ass ... iendly.pdf

The max per person is nowadays £50,000.

The prizes can be paid direct to a nominated bank account but setting that up might involve your assistance. You can also choose to reinvest prizes automatically to buy more Premium Bonds. You can only invest in whole pounds. Each person can hold up to a limit of £50,000. Any Premium Bond numbers that go over the £50,000 limit are not eligible to win prizes. ....

Oh, also, if they buy PBs for their grandchild, presumably that is another £35k limit? And counts as a gift for potential IHT purposes?


£50,000 and yes.

The pdf includes Giving Premium Bonds as a gift. Keep it in the family. … You can now apply online. Parents and guardians can buy for their child online or by phone, as well as by post. However, grandparents can only apply by post. … What about grandparents? When you’re buying for your grandchild, we’ll send you an acknowledgement of your investment. But only the nominated parent or guardian will be able to manage and cash in the Bonds.


If they want to go down the NS&I route generally, there are other "products" but the Guaranteed Income Bonds and Guaranteed Growth Bonds are online only:

https://www.nsandi.com/our-products


Return to “Bank Accounts Savings & ISAs”

Who is online

Users browsing this forum: No registered users and 3 guests