U-turn over Premium Bond prizes paid by cheque

Plans that would have ended the surprise arrival of a Premium Bonds prize on the doormat have been scrapped.

National Savings and Investments (NS&I) said it had responded to customer feedback by changing plans to axe prizes paid by cheque.

Savers can choose whether to have their prize through the door, paid directly into a bank account, or reinvested.

Premium Bonds are the most popular savings product in the UK.

They were launched by Prime Minister Harold Macmillan in April 1956.

The first winning Premium Bond number in 1957

NS&I, which provides Premium Bonds, has come under severe criticism during the Covid crisis, particularly for poor customer service.

In September, it announced plans to phase out paper warrants - like a cheque - which are sent in the post to some Premium Bonds winners.

It has encouraged people to receive payouts directly into bank accounts, claiming that system was more efficient and that fewer prizes would go unclaimed.

However, complaints from savers who were worried about the changes flooded in, at a time when NS&I's call centres were facing their own Covid-related staffing pressures.

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NS&I chief executive Ian Ackerley admitted to MPs that the timing of the proposed change had been an error,

By December, the plan had been put on hold and it has now been scrapped entirely.

"We have responded to feedback from some of our customers and we have decided to retain the option for them to receive Premium Bonds prizes through the post," Mr Ackerley said.

"We will continue to encourage customers to have their prizes paid directly into their bank account, as many have done so in the last 12 months."

He apologised to customers who had been forced to wait for a long time for their calls to be answered, but said service levels were now back to normal.