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National Savings and Investment (NS&I) is expected to pay back hundreds of millions of pounds to the families of customers who have died.
This follows an error in how the state-backed savings provider processed bereavement claims, failing to identify all NS&I products linked to some customers. Around 37,500 bereavement cases are thought to be affected, with missing payments estimated to total up to £476million.
Here Which? explains what has happened, why compensation could be due, who will be eligible, and what those affected should do now.
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Recent reports, including an investigation by the Telegraph, suggest that NS&I failed over a number of years to identify all accounts held by some deceased customers.
This meant some savings and premium bond prizes were not paid out or were delayed, leaving families waiting for money owed to estates. Around three-quarters of the cases relate to the period between 2008 and 2025.
On March 25, NS&I said its systems had suffered an 'operational failure' and confirmed it had informed the Treasury on 18 December 2025. It added that the issue has now been fixed and new measures have been introduced to prevent it happening again.
Current customer-facing supplier Sopra Steria has confirmed that it has fixed the tracing issues to prevent future errors. Atos, the previous supplier responsible for bereavement cases until 2025, has also committed to cooperating fully with the investigation.
NS&I has confirmed it will publish a delivery plan in May, detailing how it will proactively contact affected estates and how they will be 'appropriately compensated.'
No detail about the level of compensation which could be involved was revealed.
In an address to the Commons on 26 March 2026, Treasury minister Torsten Bell announced that additional staff have been brought on to help track and deliver the savings, including interest.
He said the compensation paid to those affected would be 'along the lines of how the Financial Conduct Authority (FCA) encourages best practice'. Bell added that it could include compensatory interest, as well as a 'case-by-case basis' for more complicated cases.
However, he acknowledged that there may be tax implications for some affected estates for example where delayed payments affect inheritance tax calculations. The Treasury is exploring what support could be provided to affected families in this regard.
The Financial Ombudsman criticised NS&I for repeatedly insisting its figures were correct, which prolonged the investigation. Although NS&I initially offered only £13,000, the Ombudsman ruled it must cover all the family’s costs.
Bell also said there was no need for individuals to use a claims management company or solicitor.
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As part of a 'fresh start' for the institution, it has been announced that NS&I chief executive Dax Harkins has resigned and has been replaced on an interim basis by former HMRC boss Sir Jim Harra.
In a statement, NS&I said: 'NS&I apologises and is extremely sorry for these errors. It is working hard to ensure everybody affected is paid what is owed to them. Families, beneficiaries and deceased customers' estates do not need to take any immediate action. NS&I will contact estates that are affected and will publish further information for the beneficiaries of those estates in due course.'
In its statement, NS&I noted that it was a small number of cases which had been affected by the issue and in 2025, NS&I received 211,800 new bereavement claims and repaid £4billion. This equates to around two million bereavement claims over the last ten years.
Under the standard process, executors or next of kin must notify NS&I of a death so it can trace all linked accounts and begin closing them.
For estates valued under £5,000, NS&I may be able to release funds without probate, typically upon receipt of a death certificate and a completed claim form. Larger holdings usually require a Grant of Probate or Letters of Administration.
Premium bonds are allowed to remain in the monthly prize draws for up to 12 months after the date of death before they are claimed, alongside any winnings during this period.
This gives the executor time to settle the estate before the bonds must be cashed in or the prizes claimed.
After this period, bonds are no longer entered into prize draws, but any prizes won can still be claimed by the estate once the account is processed.
NS&I is one of the largest savings organisations in the UK, holding more than £240bn for more than 24m customers. It is owned by the UK government. When you save money with them, you are lending it to the government to fund public services.
Because it is government-owned, all money saved with NS&I is fully protected by the HM Treasury. This differs from standard banks, where the guarantee is usually limited to the first £120,000 per person.
In our survey of the best savings providers, NS&I received a customer score of 64%, placing it in the bottom half of our table. It received an interest rate score of 74%. It received two stars for its customer service in general and for its regular communication transparency. It received three stars for its online banking service.
