Premium Bonds savers have been encouraged to check a crucial tax rule as they could get a HMRC bill. One of the main advantages of the savings scheme is that all winnings are tax-free, even for large sums such as £50,000, £100,000, or a £1million jackpot prize. However, depending on how you use the funds from your wins, you could end up with a tax bill.

Finance experts at Octopus Money have reminded savers to be mindful of their tax allowances. Tom Francis, head of personal finance, said: "Where tax could come into play is if you move your winnings into a savings account and start earning interest.

"Many people forget about their personal savings allowance - the amount of interest you can earn each year tax-free." Those on the basic rate for income tax can earn up to £1,000 in interest o

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