A reader has reported receiving a £25 Premium Bond prize that was paid into their bank account, despite the winning bond number not belonging to them. The prize was described as a 'move up prize.'
National Savings & Investments (NS&I) has stated that the prize is not an error and has been allocated to the reader because they previously held bonds that were on a reserve list for prize draws. According to NS&I, current bondholders who had bonds that were previously on the reserve list remain eligible for a 'move up' prize, even if their current bond numbers do not match the winning number.
This situation arises when a prize is initially won by one customer but is later found to be invalid. Reasons for ineligibility can include the death of a bondholder without NS&I being notified or if the winner holds more than the maximum permitted £50,000 in their account, which can occur if separate accounts are merged.
When a prize is deemed invalid, it is canceled. NS&I indicated that if a prize has not been cashed, it is reallocated. If a prize had been cashed, NS&I would attempt to recall the funds. A new bond number is then selected from a list of reserve winners, chosen at the time of the original draw, to receive the prize.
In this case, the reader speculated that the winnings might be linked to a bond they had cashed in years prior. NS&I suggested that the winning draw could have occurred several years ago, with the previous winner's ineligibility only recently discovered. While the reader remains unconvinced, NS&I maintains that the prize is legitimately theirs.