The last Premium Bonds draw was the first one I’ve been involved in – and I scooped a £100 prize.
However, the prize didn’t arrive in my current account right away. How quickly should a prize come through? And would it make a difference if it was a bigger prize?
At the same time, I have also opened Income Bonds with NS&I for the monthly interest. How quickly should that payment reach my current account?
Helen Kirrane of This is Money replies: Congratulations on your first time lucky win.
Premium Bonds holders can choose to have prizes paid by bank transfer directly into a current account, by cheque or reinvest the prizes so they go into the next prize draw.
Depending on which option a saver chooses, it could take National Savings and Investments longer to pay out a prize.
Income Bonds is NS&I’s easy-access account which pays interest monthly directly to your bank account.
For expert advice on your question, we asked Rachel Springall, finance expert at Moneyfacts Compare, James Blower, founder of website Savings Guru and Anna Bowes, savings expert at the Private Office.
Our reader had their first Premium Bonds prize win and wanted to know when the prize money would arrive
Rachel Springall replies: NS&I stipulate that Premium Bond winners should receive prize money by the seventh working day of the month, so its not instant.
Those who prefer to receive a cheque will need to wait for it to come through the post, which will take longer than a direct payment.
The Income Bonds with NS&I pay interest monthly, on the fifth of each month, so if someone relies on their interest to supplement their income it is essential they keep this in mind and make a diary note.
James Blower replies: Winners of Premium Bonds prizes have three choices with their winnings. They can have them paid out by bank transfer, by cheque or reinvest them.
If they choose to pay out by bank transfer then NS&I will do this by the seventh working day of the month so realistically this will be on the ninth or 10th of the month. This will explain why your reader had a delay in receiving their prize.
If winners choose to be paid by cheque then it will be a bit longer for them to receive this – more likely to be towards the middle of the month. Those who opt for reinvestment will automatically go in to the next month’s draw.
Anna Bowes replies: The interest on the Income Bonds is paid on the fifth of each month or the next working day if the fifth is a weekend or bank 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, that you must complete and send back before they can pay you the prize.
Claim forms are sent on the third working day of the month.
If you’re lucky enough to scoop the £1million jackpot, NS&I’s Agent Million will visit you in person to give you the good news.
Remember to ask for their ID before you celebrate – they’ll always have it ready to show you.
You would be asked for your preferences for where you want the money to go, and then they will check with you the following day once you’ve had a chance to sleep on it.
This month visits were made on Sunday, 1 December, and NS&I had opened Direct Saver accounts and deposited the money by Monday afternoon.
SAVE MONEY, MAKE MONEY
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence. *Chase: Cashback available for first year. Exceptions apply. 18+, UK residents.