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NS&I recently disclosed that its systems sometimes failed to locate all accounts held by a person when their family made a bereavement claim. Families received some of their loved one's savings — but not all. The error has now been corrected, and NS&I is in the process of returning the money owed. You do not need to take immediate action; NS&I will write to you directly.
When someone dies, their family needs to let NS&I know and claim any savings held in their name. NS&I discovered that its systems sometimes failed to find all the accounts a person held — meaning families were paid some savings but not others. The error has now been fixed, but the money owed to past estates was never returned.
Around 34,000 families are affected, with a total of approximately £367 million outstanding. NS&I is now working through all affected estates and repaying what is owed, with interest.
Your family may be owed money if:
You do not need to know exactly what your loved one held. NS&I's own records should show this. If you are unsure, you can contact NS&I directly and ask them to check the records for your loved one's estate.
NS&I is proactively writing to the people who sorted out each affected estate — the person who handled the finances after the death. If you were that person, you should receive a letter from NS&I. Payments are expected to run from now through to the first half of 2027.
You do not need to do anything before receiving the letter. NS&I is working through estates in batches and will contact you when it reaches your loved one's records.
Need to know if probate is also required?
1 in 3 applications are sent back. In 2 minutes, we'll tell you whether you need probate and what to do alongside these notifications.
You do not need to do anything immediately — NS&I will come to you. But if you want to check proactively, or if you think you may have been missed, you can:
Do not pay a claims management company. There is no need — this process is free and NS&I will not deal with claims companies on your behalf.
Yes — NS&I will add interest to the amount owed, calculated from when the error occurred. The interest rate used will be whichever is higher: the interest that should have accumulated on the account, or the Bank of England base rate plus 1%.
Importantly, the government has confirmed that the returned savings and interest are exempt from inheritance tax. You will not owe any extra tax as a result of receiving this money.
Yes. NS&I is proactively writing to the person who handled the finances after the death. If that was you, you should receive a letter. Payments are expected to complete by mid-2027.
No. NS&I will contact you directly and the process is free. Do not pay a claims management company — they are not needed and NS&I will not deal with them on your behalf.
NS&I estimates around 34,000 estates are owed a share of approximately £367 million. The amount varies depending on what your loved one held and for how long.
No. The government confirmed that all money returned by NS&I under this scheme — including interest — is fully exempt from inheritance tax.
NS&I has not published a specific cut-off date. If you're concerned, call NS&I on 0800 092 1286 to ask whether a particular estate is included.
NS&I savings are just one of many accounts and assets that need to be found and claimed after a death. For a full guide to the NS&I claim process, see our NS&I accounts after a death guide. For the broader picture of what needs to happen, Farra gives you a personalised checklist so nothing gets missed — get started here.
1 in 3 probate applications are sent back — usually because executors didn't know what they didn't know.
Answer 5 questions in under 2 minutes. We'll tell you whether probate is needed for this estate and, if so, exactly what to do — so nothing gets missed.
Free to check · 2 minutes · No account needed · £179 for your full probate pack
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