Premium Bonds are perhaps the most popular product offered by NS&I, the Government-backed savings institution, which protects 100 percent of all deposits should the worst happen. Each month, NS&I releases details of two lucky millionaires as well as a whole host of other prizes available through its draw. However, NS&I will soon be enacting an important change when it comes to how Britons can receive their winnings.
From Spring 2021, NS&I will start the phasing out of the use of Premium Bonds prize warrants – otherwise known as cheques.
The move was originally intended to begin in December 2020, but NS&I delayed the process due to difficulties faced by some customers when trying to update bank details.
Rather than receiving paper warrants, individuals can now expect to receive prize winnings paid directly into their bank account, or reinvested up to the value of £50,000 per person.
For customers needing to switch from the more traditional payment of Premium Bonds, there are certain steps to take.
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Individuals who are already registered for NS&I’s online and phone services will be able to enter their bank account details online through their NS&I account.
They can do so by visiting “Your Profile” and then clicking “Your prize options” to choose to have prizes paid directly to them, or reinvested into more Premium Bonds.
However, for those who have not registered for this service, and do not wish to, the process will be slightly different.
These savers can visit the NS&I website to input their bank account details but will need either an email address or mobile phone number to be notified of any winnings.
He said: “Paying Premium Bonds prizes directly into customers’ bank accounts is quicker, easier and more secure for everyone.
“It will also mean we can reduce the number of Premium Bonds prizes that go unclaimed where we don’t have a current address for the winner.
“Customers can also continue to have any prize wins reinvested into more Premium Bonds up to the £50,000 limit to increase their chances of winning in future draws.
“There is an understandable affection for prizes being received by post, but since March 2020, nearly half a million customers have switched from receiving paper warrants to having their prizes paid directly into their bank account or automatically reinvested.
“As well as being beneficial to our customers, this change will allow NS&I to manage Premium Bonds prize distribution more cost-effectively and with a much lower environmental impact.”