NS&I explains how savers can ‘get Premium Bonds prizes faster’ after U-turn

Martin Lewis advises against children's savings in Premium Bonds

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Plans to phase out Premium Bonds prize cheques – known as prize warrants – were first announced in September 2020, but the move was put on hold months later, in December. Last month, on June 24, NS&I confirmed the phasing out would no longer go ahead.

It means that customers who receive any prizes they win via cheque in the post can continue to do so.

However, NS&I did point out that the vast majority of Premium Bonds prizes are paid directly into customers’ bank accounts, or are automatically reinvested into more Premium Bonds (up to £50,000 per person).

For example, in the June 2021 Premium Bonds prize draw, nearly nine out of ten prizes (88 percent) were paid in either of these two ways.

NS&I Chief Executive, Ian Ackerley, said last month: “We have responded to feedback from some of our customers and we have decided to retain the option for them to receive Premium Bonds prizes through the post.

“We will continue to encourage customers to have their prizes paid directly into their bank account, as many have done so in the last 12 months.

“Having prizes paid directly into bank accounts is quicker, easier and more secure for our customers, while also being more sustainable and better value for the taxpayer.

“Customers who want to have their Premium Bonds prizes paid directly to their bank accounts or have their prizes reinvested, do not need to choose to manage their NS&I accounts online or over the phone, and our customer service teams will be on hand to help if they require further assistance.”

Recently, following the release of the July 2021 Premium Bonds prize draw results, NS&I suggested some winners may be able to get their Premium Bonds prizes “faster”.

Encouraging people to shift to either get prizes paid directly into their bank account, or be automatically reinvested into more Premium Bonds (up to the limit), NS&I said prize warrant recipients could opt to “get them paid more quickly, more easily and more securely”.

This can be done by choosing to have prizes paid directly into their bank account or automatically reinvested into more Premium Bonds.

NS&I recently launched a guide on getting prizes paid electronically, focusing on reasons why a person may wish to pursue this.

As the maximum holding a person can have in Premium Bonds is £50,000, there is a limit of up to £50,000 with automatic reinvestment.

In July 2021, there was a total of 3,199,250 prizes worth £91,978,375 to be paid out.

For this draw, there were 110,374,058,617 Bond numbers eligible.

This month’s two jackpot winners, who scooped £1 million each, come from County Durham and East Riding of Yorkshire.

The first Bond number to be drawn was 441KH440355 and it belongs to a man from County Durham.

He holds £20,025 in Premium Bonds, and he bought the winning Bond in February this year.

The second Bond number drawn was 439DR814317.

It belongs to a man from East Riding of Yorkshire who holds the maximum of £50,000 in Premium Bonds.

This winning Bond was also purchased in February 2021.

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