Published On: Fri, Mar 15th, 2024

NS&I warns customer their Premium Bonds could become illegal to hold | Personal Finance | Finance

A customer has been warned their could become illegal due to a change in their circumstances.

The person got in touch with the savings provider over X to ask if they needed to do anything with their savings as they were moving abroad.

NS&I responded to ask them if they are moving to the United States or if they were going to another country. The person replied to say they were relocating to Canada.

The group then advised: “Check with your local law about holding Premium Bonds, for example, in the USA it’s not legal to hold them.

“If you’re registered for the online service, try to update your details online, if you’re not able to then please call us on +44 1772 329 880.”

The NS&I website states that savers may not be able to hold some NS&I accounts in certain parts of the world because of local laws, while other accounts may be hit by extra taxes.

In particular for the USA, this information page outlines that the country has “strict gaming and lottery laws” which may make it unfeasible to hold Premium Bonds.

An NS&I spokesperson : “Before investing in Premium Bonds, those based abroad should check the rules and regulations of the country that they live in.

“We cannot advise on the laws pertaining to specific areas outside of the UK.”

Sarah Coles, head of Personal Finance at Hargreaves Lansdown, also encouraged NS&I savers planning to move abroad to check how their savings will be affected.

She told : “Gaming laws vary around the world, so it’s also worth checking whether Premium Bonds would be classed as gambling, and whether they would be allowed.”

Ms Coles also pointed out that savers moving overseas should check if their holdings will be subject to local taxes.

She explained: “Don’t forget that prizes are paid in sterling, so if the pound falls against the currency of the country where you’re living, it will be worth less.

“There’s an awful lot of admin to deal with in the run up to leaving, but it’s worth getting started plenty of time in advance, so you don’t make a move – like closing your UK bank account – without understanding the consequences.”

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