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NS&I has provided an update after reports of customers not being paid their prizes.
A customer contacted the group over social media as they had won an £100 prize. They said they previously had £500 in Bonds and had arranged for the winnings to be reinvested in buying more Bonds, but their account was still showing they had £500 worth of Bonds.
Many Bond holders set up their account so if they win a prize, the funds are automatically used to buy more Bonds, so increasing their chances of winning agian.
Asked for an update on this case, an NS&I spokesperson said: “Premium Bonds customers can choose to receive their prizes in several different ways.
“This includes being paid directly into their nominated bank account or automatically reinvested into more Premium Bonds.
“It maybe that on this occasion the person had changed their preference to auto reinvestment after their prize had been drawn.”
The group also said that the quickest way to manage your Bonds is to do so online through the NS&I website, where you can check for details of any prizes and how they have been paid.
You can change your preferences for how your prizes are paid by logging into your account and updating from prize payments there.
Any changes you make will take effect from the next prize draw. NS&I said that 90% of customers choose for their prizes to be paid directly into their bank account or reinvested in buying more Bonds.
You can hold up to £50,000 in Premium Bonds – if you choose for your prizes to be reinvested and this takes you beyond this limit, the rest of the balance will be sent out as a payment into your linked bank account.
The prize fund rate for Premium Bonds fell from 4% down to 3.8% from the April draw. The odds of each £1 Bond winning are currently at 22,000 to one.
Although you retain the value of your holdings if you don’t win any prizes, Tom Francis, head of advice at Octopus Money, warned Bond holders that they could be losing out in real terms if you don’t win anything.
He explained: “If you’re thinking of them as a way to grow your savings or keep up with rising costs, they’re probably not your best bet.
“They don’t pay interest, so unless you win a prize – which most people don’t – your money just sits there, losing value over time.”
Recent figures sourced by wealth firm AJ Bell found that two thirds of Bond holders have never won a prize, despite the average saver holding over £5,000 in Bonds.
