Premium Bonds cost £1, however the minimum investment is £25. There is also an upper limit as to how many a person can hold, and this is £50,000 per person. Once they become eligible, Premium Bonds are entered into the monthly prize draw.

What happens if the deceased customer wins a Premium Bonds prize after their death?

NS&I explains that if this circumstance occurs and they have been sent a prize warrant, the relevant surviving person should send the prize warrant back to NS&I, who will then reissue it to the person entitled to the money, once they have completed the claim.

NS&I explains they will also “hold on to any other prizes the customer wins until we have completed the claim”.

Any future prizes won will be sent by warrant after each prize draw to the person entitled to the money.

DON'T MISS

As Premium Bonds can remain in the draw for up to 12 months in the case of the customer’s death, some people may wonder who received any prizes which are won.

NS&I details that, once they have been told of the customer’s death, any prizes won will be paid by warrant to the person entitled to the money after NS&I has completed the claim.

They will hold on to any prizes the customer wins prior to this, and send them once the claim is completed.

Additionally, NS&I will then “send any future prizes won by warrant after each prize draw to the person entitled to the money”.