NS&I explains how Premium Bonds wins are paid after 'missing prizes' query

NS&I has issued an update after reports of Premium Bonds customers struggling to access their prize winnings. A customer contacted the provider over social media claiming the prize checker app said they had four prizes to collect, yet they had only received the funds for one of the prizes.

They asked: "Is the prize checker app wrong?" NS&I responded to invite the customer to send them a direct message about the issue.

The savings provider was asked for an update about the issue. NS&I said it would not be able to provide specific details about this particular customer's case.

An NS&I spokesperson said: "We pay out millions of prizes each month, so payments are rolled out in batches over a number of days. Customers can log into their account online and choose whether to have their prizes paid directly into their nominated bank account, or automatically reinvested into more Premium Bonds up to the holding limit of £50,000.

"Prizes automatically reinvested are immediately eligible for next month's draw. Prizes paid directly into a bank or building society account is quicker than waiting for a cheque to arrive in the post."

Prizes in the monthly Premium Bonds draw range from the lowest £25 up to the £1million jackpot. There are always two jackpot prizes in each draw.

The odds of each £1 Bond being paired with a prize are currently 22,000 to one. The prize fund rate for the savings scheme is 3.6 percent.

NS&I has reduced the prize fund rate several times this year, with reductions in January, April and August. If you've not won anything in a while, it may be a good idea to think about cashing in your Bonds.

Personal finance expert Aaron Peake, from free credit score service CredAbility, said: "If you've gone a year or more without any wins, it might be time to review your options. Many savers forget that interest on other accounts compounds over time, while money in Premium Bonds does not grow unless you win.

"If you have not had any luck and could earn guaranteed interest elsewhere, it may be worth moving at least part of your balance to a regular savings account or cash ISA."