NS&I failures cause distress for bereaved families tracing premium bonds

What bereaved families are experiencing

Grieving relatives trying to claim premium bonds held by deceased loved ones are facing prolonged delays and errors at National Savings and Investments (NS&I), with some waiting well over a year to access funds that rightfully belong to the estate.

The Guardian reported on 26 May 2026 that the difficulties are adding a significant financial and emotional burden on top of the ordinary grief of bereavement. One of the cases highlighted involved Kate Constable, who described the ordeal of reclaiming £46,000 in premium bonds belonging to her late mother.

“It has been more than a year of hell,” said Kate Constable, describing the time it took to claim the premium bonds belonging to her late mother. (The Guardian, May 2026)

The problems reported include errors in tracing accounts, slow administrative processing, and a requirement for full probate on any claim above £5,000. That threshold means even modest estates can require families to go through a lengthy and often costly legal process before NS&I will release any funds.

How NS&I’s probate rule affects families

NS&I is a government-backed savings institution, operated under the Treasury, and is generally regarded as one of the UK’s most trusted financial organisations. However, its internal rules on bereavement claims place a notable burden on grieving relatives.

Under current NS&I policy, any claim on a deceased person’s premium bonds or savings where the total held exceeds £5,000 requires the claimant to first obtain a grant of probate or letters of administration from the Probate Registry. Only then will NS&I proceed with releasing the funds.

Obtaining probate in England and Wales typically takes several months. The process involves submitting an application to HM Courts and Tribunals Service, paying a fee (currently £273 for estates valued above £5,000 as of 2025 gov.uk figures), and waiting for the court to process the application. Delays in the probate system itself can extend this further.

When NS&I then adds its own processing time on top, and where errors in tracing accounts occur, the total wait can stretch to a year or beyond. Figures on the average processing time for NS&I bereavement claims were not publicly available at the time of publication.

What the NS&I tracing process involves

Premium bonds are not always easy to locate after a death, particularly if the deceased did not keep clear financial records or if bonds were purchased decades ago. NS&I operates a tracing service that allows relatives to search for accounts held in a deceased person’s name.

However, The Guardian’s reporting indicates that errors in this tracing process have been a contributing factor in some delays. Families have reportedly been given incorrect information, asked to resubmit documents, or faced administrative mistakes that prolonged the claim.

NS&I has not publicly responded to the specific cases cited in The Guardian’s report at the time of writing. Additional comment from NS&I is pending.

Your rights as a bereaved claimant

NS&I is regulated and supervised under the National Savings Bank Act 1971 and operates within the broader UK financial services framework. Although it is not covered by the Financial Services Compensation Scheme (FSCS) in the same way as commercial banks, funds held with NS&I are backed in full by HM Treasury, meaning the money itself is not at risk.

Importantly, complaints against NS&I can be escalated to the Financial Ombudsman Service, which is free to use for consumers. The Ombudsman can investigate whether NS&I has treated a customer fairly, whether delays were unreasonable, and whether any errors caused demonstrable harm. Compensation for distress and inconvenience can be awarded where appropriate.

Citizens Advice also offers free guidance on dealing with financial institutions during estate administration, available at citizensadvice.org.uk.

How to make a formal complaint to NS&I

If you are experiencing delays or errors with a bereavement claim, the recommended steps are as follows.

First, contact NS&I directly in writing, setting out the timeline of your claim and what has gone wrong. NS&I’s customer service team can be reached by phone on 08085 007 007 (Monday to Friday, 8am to 6pm) or by post to NS&I, Glasgow, G58 1SB.

NS&I has eight weeks to provide a final response to your complaint. If it fails to respond within that time, or if you are not satisfied with the outcome, you have the right to take your complaint to the Financial Ombudsman Service. You can submit a complaint online at financial-ombudsman.org.uk or call 0800 023 4567.

Keep copies of all correspondence, note the dates of every phone call, and ask for a reference number each time you contact NS&I. This documentation will strengthen any subsequent Ombudsman case.

How to report more widely

If you believe NS&I’s practices are causing widespread harm to bereaved consumers, you can also report your experience to the following:

• Which? (which.co.uk): the consumer rights organisation regularly investigates and reports on financial institutions. Which? accepts consumer complaints and uses aggregated reports to campaign for systemic change.
• Your MP: constituency MPs can raise concerns with the Treasury, which has responsibility for NS&I. You can find your MP at parliament.uk.
• The Treasury Select Committee: the committee scrutinises financial institutions and can call NS&I to give evidence. You can write to the committee via parliament.uk.

What to do today if you are dealing with an NS&I bereavement claim

If you are currently waiting on NS&I to process a claim, the following practical steps may help move things forward.

Start by gathering all available documentation: the death certificate, any NS&I bond records or holder numbers, probate documents if obtained, and a clear timeline of your communications with NS&I to date. Submit everything in writing rather than relying on phone calls alone.

If probate is required and you have not yet applied, the government’s online probate service is available at gov.uk/wills-probate-inheritance. Solicitors who specialise in estate administration can also assist, though fees will apply.

For guidance on locating all financial assets held by a deceased person, including premium bonds, the government’s Bereavement Support Payment page and the Money Helper service at moneyhelper.org.uk offer free, impartial advice.

For broader context on how financial institutions handle consumer complaints, see our guide to consumer protection and your rights.