NS&I has reminded Premium Bonds savers of an important rule that could mean you don’t receive any prizes.
The warning came as the provider announced the big prize winners in the August draw. The monthly draw includes big cash prizes for amounts such as £50,000 and £100,000, or if you’re really lucky, you could bag one of the £1million jackpot prizes.
There are always two £1million prizes in each month’s draw. This month, one of the jackpot amounts went to a person from overseas.
In congratulating the winners, NS&I retail director, Andrew Westhead shared this warning: « Remember, if you’re moving abroad and want to keep your Premium Bonds, you still need to have a UK bank account. »
Guidance on the NS&I website explain why this is necessary: « To save with us, you’ll need a UK bank or building society account in your name. This is because we can only make payments to, and receive payments from, a UK account in pounds sterling. »
Premium Bonds savers moving abroad should also check the local laws where they are moving, as you may find it’s actually illegal to hold your NS&I savings.
NS&I explains: « It’s important to note local restrictions may prevent residents of certain countries from holding Premium Bonds, and accounts may be subject to local taxation rules.
« Anyone considering holding Premium Bonds while living overseas should check the laws and regulations in their country or state of residence, and ensure they update their contact details with NS&I. »
The provider also urges customers to let them know when they are moving abroad, so their details can be updated.
Sarah Coles, head of personal finance at Hargreaves Lansdown, spoke previously to encourage NS&I savers to plan ahead if they are moving abroad.
She said: « Gaming laws vary around the world, so it’s also worth checking whether Premium Bonds would be classed as gambling, and whether they would be allowed. NS&I warns that it may not be possible or practical, for example, to hold Premium Bonds in the US. »
Ms Coles also issued a warning for those who live abroad about how prizes are paid: « Don’t forget that prizes are paid in sterling, so if the pound falls against the currency of the country where you’re living, it will be worth less.
« There’s an awful lot of admin to deal with in the run up to leaving, but it’s worth getting started plenty of time in advance, so you don’t make a move – like closing your UK bank account – without understanding the consequences. »
An important change coming in from the August draw is the prize fund rate for Premium Bonds is falling from 3.8 percent down to 3.6 percent. This is the third time the rate has fallen this year.
