National Savings and Investments (NS&I)
customers may want to check how their accounts are set up, or they could miss out on some prizes they are due.
NS&I Premium Bonds holders warned of three-month rule which could cost them prize
Premium Bonds savers are being reminded of a three-month security rule that applies to prizes. National Savings and Investments (NS&I) customers may want to check how their accounts are set up, or they could miss out on some prizes they are due.
Finance expert Rachel Springall, from comparison site Moneyfactscompare.co.uk, said: “When you open a Premium Bond with NS&I, you can specify how you want any payments made, usually by bank account, so any prize should be paid around the seventh working day of the month.
“If the funds have not cleared, it’s wise to call NS&I to confirm the payment details. However, if you get your payments by cheque, be sure to cash them in as they expire after three months for security reasons, these can be replaced, so again, just give them a call to get a new one issued.”
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Ms Springall said: “The NS&I prize fund usually gets tweaked to follow the path of interest rates.
“It’s a bit hard to tell with the prolonged unrest in the Middle East and its impact on future rate setting and inflationary pressures. In the past, the prize fund has been dropped when interest rates have reduced, it’s also been increased several times when rates have moved in an upwards trajectory.”
Ms Springall said: “If you want to gradually build up the savings habit, then consider a regular savings account, where a top deal can pay 7 per cent.
“If you want an emergency fund, it’s wise to open an easy access account, ideally one that pays over 4 per cent, and consider an ISA equivalent to protect your hard-earned cash from tax.
“Fixed rate bonds or ISAs are ideal for those who have a lump sum and want a guaranteed return to watch it grow, aim for a rate over 4.50 per cent.
“One account that does tend to get overlooked as an in-between is a notice account or ISA, the best pay rates above 4 per cent but require savers to give notice to access their cash, great for careful planning.”
Ms Springall said: “The rise of challenger banks is a brilliant uplift for the savings account market, but some options can pose certain eligibility criteria or pose withdrawal restrictions.
“This makes it essential to check any terms and conditions carefully upon outset to not be left disappointed.”