Premium Bonds are a popular offering from the Government-backed savings institution, NS&I – National Savings and Investments. NS&I is backed by the Treasury, meaning all deposits made with the institution are safe should the worst happen. The lottery bond dates back to 1956, giving Britons a chance to win a range of prizes each month.
But what happens when savers win a prize, and how can they receive it?
For most prizes, NS&I explains, a direct payment to a bank account will occur, in a process described as “quick, easy and safe”.
Individuals will be informed of their win by email or text message, and then receive their prize money by the seventh working day of the month.
However, for this process, Britons need to be registered to manage their savings online, which can be achieved through the official NS&I website.
If a person usually receives their prize as a cheque in the post, they will need to let NS&I know their bank details soon.
Lucky millionaires could usually expect to be visited by Agent Million, an official from NS&I to be informed of the good news of their significant prize winning.
However, NS&I was forced to put a temporary stop to this due to the outbreak of COVID-19.
Some prize winners, however, may choose to reinvest their winnings into the purchase of new Bonds.
NS&I allows Britons to automatically choose this option, saying it is a “good way to boost your chances of winning again”.
If an account balance reaches the maximum of £50,000, the provider will pay future prizes into the bank account of a person’s choice.