NS&I has reminded Premium Bonds savers of an important rule that could imply you do not obtain any prizes.
The warning came as the supplier announced the massive prize winners in the August draw. The month-to-month draw consists of massive money prizes for quantities such as £50,000 and £100,000, or if you’re actually fortunate, 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 quantities went to a individual from abroad.
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 web site clarify why this is needed: “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 transferring overseas should also examine the native legal guidelines where they are transferring, as you may discover it’s really unlawful to maintain your NS&I financial 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 contemplating holding Premium Bonds while residing abroad should examine the legal guidelines and laws in their nation or state of residence, and guarantee they replace their contact particulars with NS&I.”
The supplier also urges prospects to let them know when they are transferring overseas, so their particulars can be up to date.
Sarah Coles, head of personal finance at Hargreaves Lansdown, spoke beforehand to encourage NS&I savers to plan forward if they are transferring overseas.
She said: “Gaming legal guidelines fluctuate around the world, so it’s also value checking whether Premium Bonds would be classed as playing, and whether they would be allowed. NS&I warns that it may not be attainable or sensible, for instance, to maintain Premium Bonds in the US.”
Ms Coles also issued a warning for those who live abroad about how prizes are paid: “Don’t neglect that prizes are paid in sterling, so if the pound falls against the currency of the nation where you’re residing, it will be value 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 fee for Premium Bonds is falling from 3.8 p.c down to 3.6 p.c. This is the third time the fee has fallen this 12 months.
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