NS&I Premium Bond prizes via BACS??

Well, you've answered your own question - their current procedures are essentially mandated by law. It may well be the case that the Finance Act 1968 is due for an update, but it's not NS&I's fault that it hasn't been done yet.

Mark

The use of "payable orders" has long struck me as both an avoidable security risk (because they can get stolen) and a waste of money (because of the charges made by banks and the Post office to clear them).

Well I think they *can* make payment by other means following the Premium Savings Bonds (Amendment etc) Regulations 2004 (SI 2004/2353). These (to quote the explanatory memorandum)

"amend the Premium Savings Bonds Regulations 1972 to: a) allow the Treasury to change the interest rate used to calculate the value of each month's Premium Bonds prize fund, or to change the way the number of prizes is calculated, without the need to give three months' notice; b) allow the Director of Savings to publish the list of winning Bond numbers on the National Savings and Investments (NS&I) website instead of in the London Gazette; c) allow the Director of Savings to repay Bonds by means other than by crossed warrant, for example through electronic funds transfer."

Note that payment by BACS but notification by post wd be in line with the way most companies deal with dividends.

Perhaps they should sell it as a "green" measure: fewer warrants to move around the country; fewer trips to the bank to pay them into accounts; less paper.

and some PLCs are now doing electronic tax vouchers as well: dividend payment via BACS, e-mail to say the dividend is being paid, and check the Registrars (secure) website for the e-tax voucher for full details.

Seems to just allow the repaying of bonds by BACS, but not prizes?

accounts;

Absolutely. They don't even need to sell it, just offer people the choice and there'll probably be a 95% uptake. I'm sure most people these days find cheques a PITA.

Not here.

IME the inconvenience of the method is far outweighed by the hard copy it establishes.

Looks that way from what I quoted but I think that may well be just sloppy drafting of the EM. The SI itself amends SI 1972/765 to provide that:

"(1A) In the absence of a direction or request within paragraph (1) above, every application for payment in respect of a bond shall be treated as conferring authority on the Director of Savings- (a) subject to the terms and conditions subject to which the bond is held, to issue a crossed warrant for that amount and pay it in accordance with the terms of the warrant, or (b) to make payment by such other means (if any) as may be provided for in those terms and conditions"

A "payment in respect of a bond" is not a defined term but I think from reg. 7(1) which begins: "Application for payment of the sum repayable, or of any other sum payable, in respect of a bond shall ...." its is clear that it covers both repayments of the "capital" and payments of "prizes".

But surely a letter saying "xxx pounds has been paid by BACS transfer" provides that?

I was referring to what I perceived as your more general comment about cheques and also where Ernie hasn't sent me enough yet to be concerned with his method of payment.