Premium Bonds confusion over ‘random payment’ of £400 into account | Personal Finance | Finance


A Premium Bonds customer was mystified to be sent a £400 payment from NS&I.

The confused saver contacted NS&I over X to ask: “Received random payment of £400. Looks like it relates to a win in June/July. Same number Bond as one that reported as £100 win. Can you explain?”

Each £1 Bond eligible to go into the monthly prize draw has an equal chance of winning a prize, which range from £25 up to the £1million jackpot.

NS&I said in response: “It is possible for the same Bond number to win in other prize draws, even if it’s won before. Have you checked your prize history to confirm that you’ve won £400?”

The provider directed the customer to the prize checker tool and said they could check their “full prize history” on their online account.

But the customer was still left confused by this answer. They further asked: “But £400 is not a normal amount and due to credit tomorrow 29th [October] not when wins credit – normally 2nd working day of month. And why is the reference a June or July reference number.”

NS&I replied asking if the prize was showing in their prize history, but the customer has not replied at the time of writing.

Premium Bonds saver may want to note that the prize fund rate for the draw is to drop from the current 4.4% to 4.15%.

This change will come into effect from the December draw, which will have some 260,000 fewer prizes than the October draw.

This will mean the the odds of winning for each £1 Bond will also fall, dropping from 21,000 to one, to 22,000 to one.

Reacting the news, Steven Kibbel, financial planner and chief editorial advisor at Gold IRA Companies, warned Premium Bond savers that they “can’t count on them as a solid way to grow your savings any more”.

He commented: “We’ve already seen cuts, and more could follow. NS&I adjusts its rates depending on a lot of factors, and they’re not immune to the economic shifts we’re all dealing with.

“It’s smart to keep an eye on alternatives and spread out where you put your money. Relying on Premium Bonds alone doesn’t cut it for most people these days. You want stability, and unfortunately, Premium Bonds just aren’t offering that right now.”

In announcing the change, Andrew Westhead, NS&I Retail Director, said: “As the savings market continues to change, we need to lower the rates on some of our products to help us meet our Net Financing target, while also ensuring we continue to balance the interests of our savers, taxpayers and the broader financial services sector.

“Even with the changes, we’re still expecting to pay out over 5.7 million prizes worth over £435million in the December Premium Bonds draw.”

NS&I will also soon be dropping the rate on the Direct Saver and Income Bonds, with the rate dropping from 4 percent to 3.75 percent from November 20.

Rates for the British Savings Bonds have also fallen, with the Guaranteed Growth Bonds now paying 4.1 percent, down from 4.25 percent, while Guaranteed Income Bonds are at 4.02 percent, down from 4.17 percent.



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