“This is because the cost of living rises each year and, unless your savings increase by the same amount, your money buys less.
“In the short term, this effect is minimal. However, look at the impact of long-term inflation and it can be significant.
“To keep pace with inflation, your Premium Bonds would consistently need to win the prize draw, but thanks to recent changes this isn’t as likely as it once was.
“Previously, the prize rate for Premium Bonds was 1.4 percent, this means each £1 bond had a one in 24,500 chance of winning a prize.
“The change meant the prize rate was slashed to one percent, resulting in odds of one in 34,500 per bond.