How quickly should Premium Bond prices and monthly interest from NS&I Income Bonds appear in a current account?
The last Premium Bonds draw was the first I was involved in – and I won a £100 prize.
However, the price was not immediately credited to my checking account. How quickly should a prize arrive? And would it make a difference if it was a bigger prize?
At the same time I also opened Income Bonds with NS&I for the monthly interest. How quickly should the payment be credited to my checking account?
Helen Kirrane from This is Money replies: Congratulations on your first lucky win.
Premium Bond holders can choose to have the prizes paid out by bank transfer directly to a current account, by check or to reinvest the prizes to go towards the next prize draw.
Depending on which option a saver chooses, it may take longer before National Savings and Investments pays out a prize.
Income Bonds is NS&I’s easily accessible account, with interest paid directly into your bank account every month.
We asked for expert advice about your question Rachel Springallfinancial expert at Moneyfacts Compare, James Blowerfounder of website Savings Guru and Anna Bowessavings expert at the Cabinet.
Our reader had won his first Premium Bonds prize and wanted to know when the prize money would arrive
Rachel Springall replies: NS&I stipulate that Premium Bond winners must receive the prize money no later than the seventh working day of the month, so it is not immediate.
Those who prefer to receive a check will have to wait for it to arrive in the mail, which takes longer than an immediate payment.
NS&I’s Income Bonds pay interest monthly, on the fifth of each month, so if anyone is relying on their interest to supplement their income, it is essential that they keep this in mind and make a diary entry.
James Blower replies: Premium Bonds prize winners have three choices with their winnings. They can have them paid out via bank transfer, check or reinvestment.
If they choose to pay by bank transfer, NS&I will do this no later than the seventh working day of the month. Realistically, this will be on the ninth or tenth of the month. This explains why your reader has been delayed in receiving their prize.
If winners choose to be paid by cheque, it will take a little longer to receive this – more likely mid-month. Those who choose to reinvest will automatically be entered into the following month’s draw.
Anna Bowes replies: Interest on the Income Bonds is paid on the fifth of each month or the next business day if the fifth is a weekend or holiday.
What if you win a big prize?
Anna Bowes replies: If you win a prize of £25,000 or more, NS&I will send you a claim form which you must complete and return before they can pay you the prize.
Declaration forms are sent on the third working day of the month.
If you’re lucky enough to win the £1 million jackpot, Agent Million from NS&I will visit you personally to tell you the good news.
Don’t forget to ask for their ID before celebrating; they always have it on hand to show you.
You’ll be asked for your preferences for where you want the money to go, and then they’ll contact you the next day once you’ve had a chance to sleep on it.
This month the visits took place on Sunday 1 December, and NS&I had opened a Direct Saver account and deposited the money on Monday afternoon.
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