You can win prizes up to £1million in the monthly Premium Bonds draw
You can win big prizes in the monthly Premium Bonds draw(Image: Getty)
NS&I has spoken out to clarify its Premium Bonds rules and how it pays out prizes. The update comes as major changes to the savings schemes are coming in from September.
The provider was asked to explain how the prize draw works after a customer raised concerns about some missing prizes. They contacted NS&I over social media as they had won three prizes in the same draw, with one prize for £500 and two prizes for £100 each. Yet they had only received the prize cheque for the £500 with the other two cheques yet to arrive.
NS&I advised them to contact them directly for help with the issue. The Government-backed savings giant was asked why this may have happened, with the customer receiving one prize cheque but not the others.
Millions of prizes paid out
An NS&I spokesperson said: “We pay out millions of Premium Bonds prizes each month. Prize warrants, similar to a cheque, are issued in batches throughout the month due to the volume of payments we make.”
They explained what this phased approach can mean for individual customers who win multiple prizes in a single draw. The group said: “This means that if a customer has won multiple prizes in the same draw, the warrants may not all arrive at the same time.
“We always aim to pay prize warrants in the month the prize is won.” Customers have several options to choose from for how they are paid their prizes.
What options do I have for my Premium Bonds prizes to be paid out?
The three options are:
- You can have your winnings paid into your UK bank or building society account
- Your winning can be automatically reinvested into buying more Bonds, up to the holding limit of £50,000
- You can be sent a cheque in the post.
NS&I said it is “quicker and easier” to have the amount either paid into your bank account or used to buy more Bonds, rather than being sent a cheque. Nine in 10 prizes are paid out in these two ways.
Major changes
Your chances of winning a prize are going up from the September draw. NS&I is increasing the odds of winning for each £1 Bond, up from 22,000 to one to 21,000 to one. The prize fund rate will also be increasing from September, from 3.8 per cent to 4.35 per cent.
This continues the trend of NS&I improving both your chances of a win and the pay out rate for the scheme this year. Back in July, NS&I upped the prize fund rate from 3.3 per cent to the current 3.8 per cents. The odds of winning also improved then, from 23,000 to one to 22,000 to one.
Most of the prizes in the monthly draw are for relatively small amounts, such as £25 or £50. But you can take home big prizes, such as £10,000, £50,000 or £100,000.
You could even win one of a £1million jackpots. There are always two £1million prizes in each draw, which takes place at the start of each month.