Premium Bonds: NS&I warns customers may need to act before end of Brexit transition period | Personal Finance | Finance

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The Brexit transition period will come to an end on December 31, 2020, with new rules coming into effect from January 1, 2021. Last week, it was confirmed a Brexit deal between the UK and the EU had been reached.

Today, the Brexit trade deal has been signed by the EU, with Council President Charles Michel and Commission President Ursula Von der Leyen undertaking a signing ceremony in Brussels.

Meanwhile, MPs are set to debate the new trade deal in the House of Commons this afternoon.

It is expected the UK Prime Minister Boris Johnson will sign the international treaty this afternoon.

Ahead of the new rules kicking in, NS&I has addressed what the end of the transition period may mean for some.

READ MORE: How you could save over £1,300 in 2021 starting with just £1

Savers who live overseas in the EU may be affected, for instance.

NS&I explained who could be impacted, as well as what they should do in terms of their NS&I savings.

“Some banks in the UK have informed customers living in countries within the EU that soon they will no longer be able to hold their UK bank account when the Brexit transition period ends on 31 December 2020,” the website states.

“We recommend that you check with your bank account provider in the UK to see whether they intend to close your account – if you’re still able to hold your UK bank account then you don’t need to do anything.”

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The government-backed savings provider went on to warn that some customers will need to take action.

The guidance states: “However, if you’re no longer able to hold your UK bank account – or your provider intends to close your account – then you’ll need to let us know details of another bank account or building society held in the UK.”

This month, NS&I announced a delay to the phasing out of Premium Bonds prize warrants – something which are similar to a cheque.

The change had been due to begin being phased in from December this year, however it has now been delayed until the spring of 2021.

December 2020 also marked the first prize draw following the recent rate reductions by NS&I.

The annual Premium Bonds prize fund rate reduced by 40 basis points on November 24, 2020.

It took the rate from 1.4 percent to one percent.

The odds of winning per £1 Bond number thus changed from 24,500 to one, to 34,500 to one.





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