Premium Bonds: End is nigh for prizes on the doormat

premium bond certificates Image copyright Getty Images

The days are numbered for the surprising arrival of a Premium Bonds prize on the doormat, organisers have introduced.

Some prize winners nonetheless obtain paper warrants – like a cheque – within the publish when their fortunate numbers are drawn.

National Savings and Investments (NS&I), which runs the scheme, mentioned these can be completely phased out by March.

Instead, prizes shall be paid immediately into financial institution accounts.

Premium Bonds are an funding product, purchased for £1 every from NS&I and assured by the Treasury.

Investors aren’t paid curiosity however as a substitute their Bonds are entered right into a prize draw every month the place they’ll win between £25 and £1 million tax free.

The choice of getting prize cash paid immediately is already obtainable and, within the newest draw, 74% of prizes had been put straight into accounts or reinvested in additional Premium Bonds.

Image copyright Getty Images

The conventional prize warrants might be cashed in at a financial institution or constructing society.

Ian Ackerley, NS&I chief govt, mentioned there was “understandable affection” for prizes being acquired by publish, however direct cost was a a lot better system.

“As well as being beneficial to our customers, this change will allow NS&I to manage Premium Bonds prize distribution more cost-effectively and with a much lower environmental impact,” he mentioned.

Premium Bonds prospects might want to guarantee NS&I has their up-to-date UK checking account particulars, together with an electronic mail handle or UK cell phone quantity, in order that they are often notified of any prize wins.

Those who fail to take action will nonetheless obtain prize letters, explaining how one can declare.

NS&I pressured that it could by no means name prospects to ask for his or her financial institution particulars.

Image copyright NS&I
Image caption The first successful Premium Bond quantity in 1957
Image copyright NS&I
Image caption The new laptop chip that powers Ernie 5 is the dimensions of a grain of rice

More than £88bn is invested in Premium Bonds by greater than 21 million folks.

The possibilities of successful stay slim, with odds of 24,500 to one among every £1 Bond successful any of the tax-free prizes.

Each month, Ernie – or Electronic Random Number Indicator Equipment – makes the common Premium Bonds draw from Blackpool.

Its fifth incarnation – a pc chip the dimensions of a grain of rice – has been drawing the successful numbers for the final 18 months.

Selecting the numbers solely takes minutes, in comparison with the 9 hours taken by its instant predecessor and the 10 days it took Ernie 1 to finish the draw.