Laura Suter, head of non-public finance at AJ Bell, warned savers they need to “have a look at the small print” before investing in Premium Bonds as a saving option.
She explained: “Your odds of truly winning a prize haven’t improved and remain at 24,000 to at least one for every £1 bond you hold.
“But when you do win a prize you’re more prone to win a much bigger sum, because the prize fund has been boosted.
“While plenty of individuals are drawn in by the Government-backing and the tax-free nature of Premium Bonds, the vast majority of people would likely be higher off choosing a typical savings account and getting a guaranteed interest.
“The highest easy-access savings account currently pays three percent but you possibly can get more interest with fixed and spot accounts.”