An NS&I system glitch has resulted in hundreds of thousands of savers and Premium Bond holders waiting up to six months to receive interest payments and prizes.
The problem has hit some 349,000 savers with funds worth just over £1.1billion in total, as well as 999 Premium Bond winners with prizes worth a combined £27,175, NS&I confirmed.
Savers who stashed money into NS&I’s Direct Isa, Direct Saver, Investment Accounts and Junior Isas between 19 July and 29 September last year in some cases have waited up to six months to receive interest due, MoneySavingExpert revealed.
James Blower, head of digital at Moneyfacts, says he isn’t surprised and believes NS&I’s reputation has become permanently damaged by a combination of brutal rate cuts, poor service levels and system glitches.
NS&I has said it will be paying 8 per cent interest on any Premium Bonds prizes still due.
NS&I said the problem has been resolved. It said that following an update to its systems in mid-July last year, it was discovered that, when customers were investing in NS&I products, the incorrect date for the sale was being applied to the transaction.
An NS&I spokesperson said: ‘Affected customers have not lost out on any interest due to them and customers do not need to take any action. NS&I apologises to all customers affected.’
Those who purchased Premium Bonds during this period may also be missing prize wins due to some bonds not being entered into the first draw in which they should have been eligible.
NS&I has said it will be paying 8 per cent interest on any Premium Bonds prizes still due.
NS&I’s spokesperson said: ‘For affected Premium Bonds customers who invested at the end of a month, their Bonds may have become eligible for a prize draw a month later than intended.
‘Retrospective prize checks have been run on the affected Bonds, and customers will be notified in writing by NS&I of any prize wins, which will be paid to them via their chosen prize payment method.’
Those who invested in its Direct Isa, Direct Saver, Income Bonds, Investment Account and Junior Isa during that period last have had their accounts automatically updated with the correct investment date and any interest payments have been backdated.
Income Bonds customers have also had any interest due to them paid as part of either their January or February dividend payment.
James Blower says: ‘A look at NS&I’s Trustpilot score shows that 86 per cent of reviewers rate it “bad” – the site is littered with tales of woe from savers of poor service.
‘NS&I’s decision to savagely cut interest rates in November 2020 saw billions of pounds withdrawn in the last quarter of 2020 and, stripping out Premium Bonds, which have continued to grow balances, money has flowed out of NS&I since.
‘The state savings provider seemed completely unprepared for the customer reaction its cuts bought and seems to have struggled to cope ever since.
‘It’s exacerbated the service issues with unveiling plans to withdraw paying Premium Bond prizes by cheque, a decision which it reversed, so this latest news is sadly no surprise at all.
‘NS&I has torched its reputation and I think it will be sometime before savers who have been impacted will return.’
