Martin Lewis gives updated advice on premium bonds
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Premium Bonds are overseen by NS&I, and the Government-backed savings provider has spotted a vital issue with the way in which some prizes were administered. NS&I is now beginning to cancel prizes won with Bonds which unknowingly pushed savers over the £50,000 mark. Under Premium Bonds rules, savers can only invest up to £50,000 in the hopes of snagging the top prize.
In some cases, Premium Bonds which are decades old may have broken the rules and are now subject to checks.
Understandably, this could be devastating for those who are unaware of the fact the rules have been broken.
It is not the first time NS&I customers have experienced a shock like this.
In 2017, it was found some 18,000 customers had more than one set of Premium Bonds listed in their name.
As a result, they had exceeded the limit which was laid out by the savings institution.
NS&I, which has been popular for many decades, has confirmed to Express.co.uk it is taking action on the matter.
It is to look through older accounts, and combine those which require action.
This is in efforts to ensure savers only have one Premium Bonds account registered in their name.
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The organisation is paying back surplus sums to those customers who have been impacted through their nominated bank accounts.
However, this will not include any prizes won by Bonds which were ineligible due to a person having more than the maximum holding limit.
These prizes are then re-allocated to the next eligible Bond drawn in the relevant month’s draw.
NS&I told Express.co.uk it has also apologised to the customers who have been impacted by this matter.
Premium Bonds, a lottery bond system, remain an extremely popular method of saving following being established back in 1956.
Bonds are entered into a draw each month, where a random number generator will pull out winners.
Currently, each month two lucky millionaires are created, with a myriad of other top prize winners.
Prizes can range from £25 to a whopping £1million, and many will rejoice each month to wake up richer.
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People are able to buy Premium Bonds directly from NS&I at any time they so wish throughout the year.
However, they should be aware these must be held for a whole calendar month before they can be entered into prizes.
From December 2020, the odds of a £1 bond winning a prize in any given month is set at 34,500 to 1.
The prize rate fund for Premium Bonds currently stands at one percent variable – which instead of being paid in interest, funds the millions of prizes offered to savers.
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