Currently some Premium Bond holders opt to have prizes paid in the form of a paper ‘warrant’, which is like a cheque – though you can also choose to have prizes paid straight into your bank account, or reinvested to buy more Premium Bonds.
In September 2020, NS&I – which runs Premium Bonds – said it would start moving customers who get paper warrants over to bank transfer prize payments from December 2020, with paper warrants being phased out completely by March 2021. It argued that paying Premium Bond prizes directly into bank accounts is quicker, easier and more secure, and less likely to result in prizes going unclaimed.
But it now says it’s rethought those plans, following feedback from customers, and will continue to issue prizes as cheques where requested. NS&I has faced a high level of complaints over customer service in recent months, and a significant backlash to the decision to axe cheques.
For full details on how Premium Bonds work, including our analysis of whether they’re worth buying, see our Premium Bonds guide.