Premium Bonds savers have been warned their Bonds may be illegal for them to hold depending on where they live.
Some parts of the world have strict gambling laws meaning a person holding Premium Bonds may not be able to take part in the monthly prize draw.
Sarah Coles, head of Personal Finance at Hargreaves Lansdown, encouraged NS&I savers planning to move abroad to check how their savings will be affected well in advance of their move date.
She told Express.co.uk: “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. NS&I warns that it may not be possible or practical, for example, to hold Premium Bonds in the US.”
Guidance on the NS&I website states: “If you live outside the UK, please check if local regulations let you hold Premium Bonds. For example, the US has strict gaming and lottery laws which mean that it might not be possible or practical to hold Premium Bonds while in the US.”
In December 2023, NS&I responded to a query on X saying that “our Premium Bonds cannot be held by residents in the USA”.
Ms Coles said another potential issue for savings moving abroad is that their Premium Bond prizes may be hit by taxes.
She added: “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.”
An individual moving abroad will need a UK bank or building society account in their name to hold NS&I products as the provider can only make payments in pound sterling into UK accounts.
Ms Coles said: “Life is easier if you also keep a UK address. However, if you’re not going to keep one, you should still be able to hang onto the products. There are just several hoops to jump through, and a form to fill out and post.”
NS&I also advises savers who are moving abroad to let the provider know, so their details can be updated.
Express.co.uk has asked NS&I for comment about how Premium Bonds customers could be affected if they move abroad.
The prize fund rate for Premium Bonds is set to fall from 4.65 percent to 4.4 percent from the March draw.
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