When Celia Dowell’s husband, Robert, passed away in December, the 85-year-old widow experienced a swift transfer of his savings from the banks where he maintained accounts, thanks to their attentive bereavement teams.
However, the situation took a different turn when it came to Robert’s Premium Bonds managed by National Savings and Investments (NS&I), a state-owned bank. Despite her efforts, Celia has yet to receive any portion of the funds.
She’s entitled to over £18,000, but Celia’s predicament is not unique. Approximately 37,500 individuals are currently facing similar delays in accessing funds from NS&I accounts of deceased relatives, with the total amount potentially reaching £476 million.
The controversy has already prompted significant changes at NS&I, with Chief Executive Dax Harkins resigning amid the scandal. He has been succeeded by Sir Jim Harra, the former head of HM Revenue & Customs.
Numerous people have shared their frustrations, recounting months of waiting and dealing with unhelpful NS&I representatives. Many have also been required to obtain probate—a legal document granting the right to manage someone’s estate—even for relatively modest sums.
After Robert succumbed to pulmonary disease last year, Celia, who resides in Marston Green in the West Midlands, promptly submitted all necessary paperwork to NS&I. She received a letter on February 25, assuring her that the funds would be released ‘shortly’.
Unsympathetic: Nustran Bryce, with her late husband Robert, has clashed with NS&I staff
‘I haven’t heard anything since,’ says Celia, who would have marked her 65th wedding anniversary in March. ‘I was just told that there was a heavy backlog for bereaved families. I can’t understand why it’s taking so long – it’s like getting blood out of a stone.’
Nustran Bryce, 71, a former civil servant from Glasgow, says it feels like NS&I does not have a bereavement team because of how unsympathetic the staff were on the phone when she was trying to get her late husband Robert’s Premium Bonds.
She says: ‘I’ve had to deal with a number of financial institutions and they all have a dedicated bereavement team, and there’s no hassle at all. They’re professionally trained and it’s wonderful. It feels like NS&I doesn’t have this, so the right hand doesn’t seem to know what the left hand is doing.’
Nustran was sent the Premium Bonds but received his winnings on the bonds, nearly £1,000, in warrants. These give the holder the right to sell the bond at a specific price – but usually must be taken to the bank to execute.
This meant she had to travel to the bank to cash them in. Nustran can no longer drive due to poor eyesight, making the trip difficult.
NS&I won’t join Tell Us Once service
NS&I refuses to be a part of the Tell Us Once or Death Notification Service that means a bereaved family has to inform the Government and private banks only once of a relative’s death. This means you must contact NS&I specifically when someone dies.
Nustran is considering moving her money away from Premium Bonds, adding: ‘Trying to resolve issues through their telephone systems is a complete nightmare – just shambolic.’
Mary Handley waited six months for her husband Patrick’s £50,000 Premium Bonds to be paid out.
She attempted to withdraw the money but, after numerous calls and obtaining a probate, the 82-year-old says she heard nothing back. She made further calls to NS&I staff but says that they then treated her ‘dismissively’.
Like her late husband, to whom she was married for 60 years before he died in March last year, Mary also has £50,000 in Premium Bonds. She says: ‘This whole ordeal has made me think. I don’t want my family to go through this when anything happens to me. I’m going to move the money elsewhere. They have broken my trust.’
Maureen Michelson, 74, says she was forced to get probate to get hold of her late husband’s £50,000 in Premium Bonds.
NS&I has a low limit for requiring customers to get a probate to access a loved one’s bonds. Any Premium Bonds worth more than £5,000 require one, which can cost £300 if the estate is worth £5,000-plus. Most banks, such as Barclays, Lloyds and NatWest require probate only when the value of an account exceeds £50,000.
An NS&I spokesman says: ‘We have spoken to Mrs Dowell and arranged for her late husband’s savings to be paid directly to her, as well as agreeing a goodwill payment for the distress and inconvenience it has caused.
‘We apologise to any of our customers who have had a poor experience and where we have fallen short of their expectations.
‘NS&I is not part of the Government’s Tell Us Once service, which focuses on updating departments that provide services such as benefits, passports and pensions, rather than banking services and investments, which often require individualised contact with executors.’
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