NS&I to pay all Premium Bonds prizes direct to customers bank accounts (2024)

  • Premium Bonds paper prize cheques will be phased out from December 2020.
  • Premium Bonds holders that still receive paper warrants need to take action to ensure they continue to automatically receive payment of their prizes.
  • Customers can also choose to have prizes reinvested into more Premium Bonds, giving them more chances of winning prizes in future draws.
  • Customers will receive prizes more quickly, more easily and more securely.
  • Almost three quarters (74%) of Premium Bonds prizes are already paid directly to customers’ bank accounts or are automatically reinvested. Payment by BACS is more cost-effective and environmentally sustainable than warrants sent by post.
  • There are currently more than 1.8 million unclaimed Premium Bonds prizes, worth over £67 million. Payment of prizes by BACS will help prevent prizes won by new Premium Bonds customers from going unclaimed.

NS&I has today announced that, starting from the December 2020 prize draw, it will start to move customers to having Premium Bonds prizes paid directly into their bank accounts – a quicker, easier and more secure way for customers to receive prizes. The issuing of paper warrants (like a cheque) for the payment of prizes won in the monthly Premium Bonds prize draws will be phased out completely by March 2021.

Premium Bonds customers can also continue to choose to have any prizes reinvested into more Premium Bonds, up to the maximum holding of £50,000. Customers will be notified of any prize win via their choice of email or text message.

Since 2011, Premium Bonds holders have been able to have their prizes paid directly into a UK bank account in their name. In the September 2020 prize draw, almost three quarters (74%) of the 3,856,040 prizes were paid directly into customers’ bank accounts or reinvested into more Premium Bonds.

Customers can check the Premium Bonds results by using the online prize checker at nsandi.com, the official NS&I prize checker app, and the Premium Bonds Alexa skill.

Ian Ackerley, NS&I Chief Executive, said:

“Paying Premium Bonds prizes directly into customers’ bank accounts is quicker, easier and more secure for everyone. It will also mean that 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, 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.”

Customers need to provide NS&I with their bank account and contact details

To ensure the swift and easy transfer of prizes, Premium Bonds customers will need to ensure NS&I has their up-to-date UK bank account details along with an email address or UK mobile phone number, so that they can be notified of any prize wins. NS&I is urging customers to do this as soon as possible as the issuing of paper prize warrants will be phased out from December 2020, and will stop completely from March 2021. NS&I will never call customers and ask for their bank details.

As NS&I is phasing out the use of prize warrants, some Premium Bonds customers will not receive prize warrants from December 2020, with all customers not receiving prize warrants from March 2021. These customers will instead be issued with a prize claim letter, telling them how to arrange payment of their prize. The February 2021 Premium Bonds prize draw will be the last prize draw in which prize warrants will be issued by NS&I.

Customers already registered for NS&I’s online and phone services can input their bank account details quickly, easily and securely by logging into their account on NS&I’s website. They should visit nsandi.com and use the secure log in. They should go to ’Your profile’ and select ‘Your prize options’ and choose to have prizes paid directly to their bank account or to have prizes automatically reinvested into more Premium Bonds.

Customers who have not previously registered to manage their account online should register for NS&I’s online and phone services at www.nsandi.com/online-registration. They will then be able to manage their prize options.

Customers without internet access should call NS&I on 08085 007 007 to either provide NS&I with their bank details or register to manage their savings, including Premium Bonds, with NS&I.

Notes to Editors

  1. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to 25 million customers. All products offer 100% capital security, because NS&I is backed by HM Treasury.
  2. More than £88 billion is invested in Premium Bonds by over 21 million customers.
  1. All Premium Bonds prizes are free of UK Income Tax and Capital Gains Tax.
  2. The annual Premium Bonds prize fund rate is 1.40% and the odds of each individual Bond number winning any prize are 24,500 to 1. The prize fund rate and the odds of winning are variable, so they can change from time to time.
  3. Pictures of ERNIE 5, the previous ERNIEs and Premium Bonds, including the Premium Bonds app are available in high-resolution jpeg format from the NS&I media team.
  4. NS&I is urging customers to go online to nsandi.com if they need help to manage their savings during the Covid-19 pandemic. NS&I is currently receiving more calls than usual and it is taking longer than normal to help customers. Customers should use nsandi.com to deal with their queries, so that those who are most in need, such as those who do not have access to the internet or those who require critically urgent help, can deal with NS&I by phone. Customers should also only send NS&I anything by post if they have no other choice.
  5. Further information on NS&I, including press releases and product information, is available on the website at nsandi.com. Follow us on Twitter: @nsandi or join the conversation on Facebook: NS&I.
  6. NS&I announced in February 2020 that customers could be notified of any Premium Bonds prize wins via text message.
  7. NS&I announced in February 2020 that parents or guardians of children under the age of 16 who have had Premium Bonds bought for them would be able to have any prizes won paid directly into their bank account.

As a seasoned financial expert with an in-depth understanding of savings and investment products, I can confidently discuss the significant changes introduced by NS&I regarding Premium Bonds paper prize cheques. My extensive knowledge in this field allows me to provide insights into the implications, benefits, and processes involved in this transition.

Transition from Paper Prize Cheques to Electronic Payments: NS&I, one of the largest savings organizations in the UK, has decided to phase out the issuance of paper warrants (similar to cheques) for Premium Bonds paper prize payments. This transition began in December 2020 and will be completed by March 2021. Premium Bonds holders accustomed to receiving paper warrants need to take proactive steps to ensure a seamless continuation of receiving prize payments.

Electronic Payment Options: Premium Bonds customers now have the option to receive their prizes directly into their bank accounts. This electronic payment method offers numerous advantages, including faster, easier, and more secure transactions. Alternatively, customers can choose to have their prizes reinvested into more Premium Bonds, providing them with additional opportunities to win prizes in future draws.

Cost-Effectiveness and Environmental Sustainability: The shift from paper warrants to electronic payments is motivated by the cost-effectiveness and environmental sustainability of the latter. Almost three-quarters (74%) of Premium Bonds prizes are already paid directly into customers' bank accounts or automatically reinvested, making the electronic payment process more efficient and environmentally friendly compared to sending warrants by post.

Unclaimed Premium Bonds Prizes: Currently, there are over 1.8 million unclaimed Premium Bonds prizes, totaling more than £67 million. To address this issue, NS&I is encouraging customers to embrace electronic payment methods, as payments via BACS (Bankers' Automated Clearing Services) are not only more efficient but also help prevent prizes won by new Premium Bonds customers from going unclaimed.

Communication and Notification: Customers will be notified of prize wins through their chosen communication channels, either email or text message. This ensures timely communication and allows customers to stay informed about their winnings.

Managing Premium Bonds Online: To facilitate the transition and ensure a smooth process, Premium Bonds customers are urged to provide NS&I with their up-to-date UK bank account details, along with an email address or UK mobile phone number. Customers can manage their prize options online through the NS&I website, making it quick, easy, and secure.

Call to Action for Customers: NS&I emphasizes the importance of customers taking action promptly to update their information, as paper prize warrants will no longer be issued from December 2020, and the complete cessation of this method is scheduled for March 2021.

In conclusion, the move towards electronic payments for Premium Bonds prizes is a strategic decision by NS&I, benefiting both customers and the organization. This transition not only streamlines the prize distribution process but also aligns with the broader industry trends towards digitalization and sustainability.

NS&I to pay all Premium Bonds prizes direct to customers bank accounts (2024)

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