Premium Bonds update as Lloyds Bank customer struggles to cash in prizes

NS&I has issued an update on how to claim your Premium Bonds prizes after a customer was having issues receiving their prizes. A customer contacted their bank, Lloyds Bank, over social media, as they were being sent prize cheques but wanted to change this so they were sent their prizes directly into their bank account. They said they were unable to pay in the cheques through the banking app using the scanning tool.

In response, Lloyds Bank provided some guidance on how best to cash in the cheque. The group explained: "The cheque might be getting rejected due to its layout, like the length or height proportions. If this keeps happening, you can visit your nearest branch with two forms of ID, and they'll help deposit it without any issues."

The customer expressed their surprise that they would need to bring two forms of ID to cash the cheque. Lloyds responded: "You usually won't need two forms of ID to deposit a cheque, but if there's any issue verifying the account, branch staff might ask just to keep things secure."

NS&I was asked for a comment about the situation. A spokesperson said: "Premium Bonds customers can choose to have their winnings paid directly into their UK bank or building society account, or automatically reinvested into more Premium Bonds.

"This is quicker and easier than waiting for a cheque, and nine in ten prizes are now paid in these ways. The easiest way to do this in online and it comes into effect for the next draw, so it may be that on this occasion the person had changed their preference after their prize had been drawn."

The group encouraged any customers who are having issue with their prize being paid to contact the customer service team on 08085 007 007.

NS&I said the quickest way to manage your Bonds is through the NS&I website, where you can view details of the prizes you have won and how they were paid out.

You can also change your preferences for prize payments by logging into your online account. Any changes you make here will come into effect from the next draw.

The prize fund rate for Premium Bonds changed from the August draw, dropping again from 3.8 percent down to 3.6 percent.

This was the third time the rate fell this year, after it dropped in April and in January. The odds of any £1 Bond winning are currently 22,000 to one.