The NS&I Scandal: What it Means For Your Family’s Cash

The homepage of the official website for National Savings and Investments, the state-owned savings bank in the UK

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By Rachel Lacey | Published - 31 Mar 2026

Important info

This article is for general guidance only and is not financial or professional advice. Any links are for your own information, and do not constitute any form of recommendation by Saga. You should not solely rely on this information to make any decisions, and consider seeking independent professional advice. All figures and information in this article are correct at the time of publishing, but laws, entitlements, tax treatments and allowances may change in the future.

National Savings & Investments, the government-backed savings institution that provides Premium Bonds, has been accused of losing track of bereaved families’ money and withholding the payment of cash prizes.

Here we lift the lid on the accusations, explain how affected families will get their money back and ask what the scandal means for customers of the trusted savings institution.

What’s on this page?

What has been going wrong at NS&I?
What happens next
How families will get their money back
What the scandal means for NS&I customers
What to do next

What has been going wrong at NS&I?

Dax Harkins, chief executive at NS&I, has resigned following accusations that the savings institution had lost track of late customer funds.

Following an investigation by The Telegraph into customer service failures at NS&I, it has emerged that as many as 37,500 families have struggled to access their loved ones’ savings worth around £476 million after they have died. Most of the cases relate to the time between 2008 and 2025.

To put the numbers in context, NS&I said that in 2025 it had received 211,800 new bereavement claims and repaid £4bn.

Laura Suter, director of personal finance at AJ Bell, said: “NS&I has effectively been accused of a major administrative failure – losing track of customers’ savings, particularly when people have died. According to reports, over a long period, it failed to trace and pay out money sitting in accounts, meaning hundreds of millions of pounds may have gone unclaimed.”

The Telegraph spoke to one retired nurse who said that it took her a year to access her late father-in-law’s Premium Bonds, worth the maximum £50,000. She eventually turned to a solicitor for help, shelling out £1,800 in legal fees.

In a statement on 26 March, NS&I apologised for its errors and said: “NS&I has identified an issue where the estates of deceased customers were not always repaid money from all of their accounts following a bereavement claim.”

“These errors happened because the search process used when handling a bereavement claim failed to identify all NS&I products. The issue has been resolved for current and new bereavement claims and robust measures have been introduced to ensure this does not happen again.”

It appears that NS&I processes struggled to trace all customers’ funds where they were spread across several profiles or systems. This was in spite of identifying details such as name, address and date of birth being consistent.

Dax Harkins has now been replaced with an interim chief executive, former HMRC boss Sir Jim Harra. He will be charged with resolving the problem and helping affected customers get their money back.

What happens next

Addressing parliament on 26 March, pensions minister Torsten Bell set out three priorities for NS&I.

Find the cause of the problem and provide a solution
Ensure deceased customers’ savings are returned to their beneficiaries, with compensation paid where “appropriate”
The completion of a £3bn modernisation programme, which has made little progress since it was started in 2020, and was described by the public accounts committee last month as a “full-spectrum disaster”.

NS&I has hired 100 additional staff to carry out the work and will publish a plan for how people will get their money back in May.

Bell also confirmed that the Treasury was first made aware of the problems at NS&I in December 2025.

How families will get their money back

It has been estimated that NS&I will need to return around £400m to customers.

Although there’s no explanation yet as to how or when this money will be paid, Torsten Bell stressed that there was no need for affected families to hire solicitors or turn to claims management companies.

“The onus is not on individuals but on NS&I to act and to contact estate representatives and reconnect beneficiaries with the money they are due. We are committed to ensuring NS&I support those who have experienced a loss by making the process for reuniting beneficiaries with their money as easy as possible.”

He added: “We also recognise that there may be tax implications for affected estates, and want to avoid bereaved families facing disproportionate disruption and administrative costs as a result of this error. We are exploring what support we can provide and will set this out alongside NS&I’s Delivery Plan.”

NS&I will be working to return cash to families, but Suter said affected individuals could still be proactive.

“For those who think they may be affected, for example, if a relative held Premium Bonds or other NS&I products, it’s worth checking and making a claim through NS&I directly. Definitely watch out for any third-party claim firms saying they can reclaim the money for you – as they will often take a hefty cut of any compensation. Executors or administrators will typically need to provide details of the deceased and proof of entitlement to access the funds.” 

Compensation may be paid to some families where appropriate, as well as potentially interest on the savings.

What the scandal means for NS&I customers

Premium Bonds are the UK’s most popular savings plan. At the end of 2025, there were 22 million bond holders with savings worth £134 billion.

In 2025 NS&I paid out £4.9 billion in cash prizes and 470,000 new accounts were opened. The odds of a big win are low, especially if you only have a small holding, and for the majority of customers who don’t win, their money will lose value compared with inflation.

Premium Bonds are popular because of the chance of a big win, as well as the fact that prizes are paid tax-free. All accounts are backed by the government – boosting their appeal further.

Suter said: “NS&I remains backed 100% by the Treasury, meaning savings are effectively government-guaranteed, so in terms of safety, it’s still one of the most secure places to hold cash.”

But this scandal will tarnish NS&I’s reputation. Suter added that the recent issues highlight the fact that ‘safe’ doesn’t necessarily mean ‘hassle-free’. “For customers, it’s a reminder to keep good records, make sure loved ones know about your savings, and keep accounts up to date. Because while your money may be secure, getting hold of it at the right time hasn’t always been as straightforward as it should be.” 

What to do next

If you’re affected, don’t panic – you should get your loved one’s money back. NS&I says those affected will be contacted. More details about how and when this will happen will be published in May.
Watch out for scams. High-profile cases like this often trigger phishing scams claiming to help “recover NS&I money”. You don’t need to pay anyone to help you recover lost NS&I funds
If you have savings or Premium Bonds that you’re worried about going missing after your death, it’s always a good idea to write a letter for your executors with a list of all your bank accounts and investments.