You are here: Home - Investing - Experienced Investor - News -

U-turn over ditching Premium Bond prize cheques

Written by: Emma Lunn
National Savings and Investments (NS&I) has changed its mind about axing prizes paid by cheque.

NS&I will no longer be moving all customers to having Premium Bonds prizes paid directly to their bank accounts, meaning that customers who receive their prizes by cheque can continue to do so.

Initially NS&I was due to begin phasing out the prize warrants – which are like a cheque – from the December 2020 prize draw, with the last prize warrants being sent in February 2021.

But it pushed this back until spring, due to the difficulties some customers had when trying to register their bank account details with NS&I.

But the NS&I annual report 2020-21 says that the state-backed organisation has now opted not to remove prize cheques completely.

The report says that while NS&I will continue to encourage all customers to have Premium Bonds prizes paid directly into their bank accounts or reinvested, customers can continue to receive their prizes by cheque.

The vast majority of Premium Bonds prizes are paid directly into customers’ bank accounts, or automatically reinvested into more Premium Bonds.

In the June 2021 Premium Bonds prize draw, nearly nine out of 10 (88%) prizes were either paid directly into customers’ bank accounts or reinvested into more Premium Bonds.

Ian Ackerley, NS&I chief executive, said: “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.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week