Premium Bonds December 2020: NS&I announces £1million winners as changes come into force

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Rate reductions on a number of NS&I – which stands for National Savings and Investments – savings products came into effect earlier this month, on November 24. It saw the annual prize fund rate for the Premium Bonds reduce by 40 basis points, from 1.4 percent to one percent.

The cuts were announced back in September this year, and following them coming into force last week, new odds are effective starting from this month’s Premium Bonds prize draw.

The odds of winning per £1 Bond number now stand at 34,500 to one, having formerly been 24,500 to one.

This month, the prize fund was in excess of £82million.

The total number prizes was more than 2.8 million.

Among them were two jackpot winners, who have been selected for a £1million payout each.

While their identities remain under wraps, NS&I has shared some details about them.

The first winner is female, from Manchester, and has £30,010 invested.

The other December millionaire is female and from South Gloucestershire. They have the maximum holding of £50,000. 

A total of four people scooped a high value prize of £100,000 this month, while nine were selected for prizes to the tune of £50,000.

The minimum prize amount, which is tax-free, is £25 ranging up to £1million.

Premium Bonds limits are in place – with the minimum holding being £25.

At the other end of the scale, a person can have a maximum holding of £50,000.

December 2020 also marks the first of several months in which NS&I will phase out the Premium Bonds paper prize cheques.

NS&I has warned Premium Bonds holders who still receive paper warrants they’ll need to take action to ensure they continue to automatically receive payment of their prizes.

They will need to ensure NS&I has their up-to-date UK bank account details as well as an email address or UK mobile phone number.

By March 2021, the issuing of paper warrants for the payment of prizes won in the monthly Premium Bonds prize draws will be phased out entirely.

Premium Bonds holders have been able to have their prizes paid directly into a UK bank account in their name since 2011.

Back in September 2020, almost three quarters (74 percent) of the 3,856,040 prizes were paid directly into customers’ bank accounts or reinvested into more Premium Bonds.

Ian Ackerley, NS&I Chief Executive, said: “Paying Premium Bonds prizes directly into customers’ bank accounts is quicker, easier and more secure for everyone.

“It will also mean that we can reduce the number of Premium Bonds prizes that go unclaimed where we don’t have a current address for the winner. Customers can also continue to have any prize wins reinvested into more Premium Bonds up to the £50,000 limit to increase their chances of winning in future draws.

“There is an understandable affection for prizes being received by post, but since March, nearly half a million customers have switched from receiving paper warrants to having their prizes paid directly into their bank account or automatically reinvested.

“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.”

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