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From the December 2020 prize draw, Premium Bonds paper prize cheques will be phased out, NS&I announced last week. As such, those who currently still receive paper warrants have been warned they need to take action in order to ensure they continue to automatically receive payment of any prizes they may win.
The move will mean the issuing of paper warrants, something which is like a cheque, for the payment of prizes won in the monthly Premium Bonds prize draws will be phased out entirely by March 2021.
The change will mean customers will be moved to having Premium Bonds prizes paid directly to their bank accounts.
Those who wish to, can continue to choose to have any prizes reinvested into more Premium Bonds.
This is up to the maximum holding per person of £50,000.
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.”
The ability to have prizes paid directly into a UK bank account in their name is something Premium Bonds holders have been able to do since 2011.
In the September 2020 prize draw, almost three quarters (74 percent) of the 3,856,040 prizes were either paid directly into customers’ bank accounts or reinvested into more Premium Bonds.
From December 2020, some Premium Bonds customers will not receive prize warrants, as they begin to be phased out.
This form of payment of the prizes will stop completely from March 2021.
Therefore, the February 2021 Premium Bonds prize draw will be the last prize draw in which prize warrants will be issued by NS&I.
As such, Premium Bonds customers will need to ensure NS&I has their up-to-date UK bank account details.
They will also need to make sure the savings provider has got their email address or UK mobile phone number.
This is so they can be notified of any prize wins.
However, a warning has been issued to Premium Bonds holders.
This is that NS&I will never call customers and ask for their bank details.
How to update NS&I
Those who are already registered for NS&I’s online and phone services can input their bank account details by logging into their account on NS&I’s website.
After visiting nsandi.com and using the secure log in, they’re directed to 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.
People who have not previously registered to manage their account online can do so on the NS&I website.
Meanwhile, those who do not have internet access should call NS&I on 08085 007 007, where they can either provide NS&I with their bank details, or register to manage their savings with NS&I.
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