NS&I has clarified the rules around what happens if your Premium Bonds prize winnings take you over your holding limit.

Each saver can hold up to £50,000 in Premium Bonds, and many savers choose to have any cash prizes they win reinvested in buying more Bonds, so increasing their chances of winning again.

But there is the risk that your win could take you over the £50,000 holding limit, especially if it's for a larger amount. Some of the big cash prizes would use up the holding limit on their own, with prize amounts such as £50,000 and £100,000 available.

NS&I said recently that in a case where a person has gone over their limit, the group will "send a payment for any balance".

The group was asked to clarify how this payment is made. A spokesperson said: "The prize payment will be either paid to the person's nominated bank account or issued as a cheque by post dependent on the customer's registered preference."

NS&I said that prize payments usually go out by the 7th working day of the month, allowing for weekends and bank holidays.

Prize winners usually receive an email or text notification that they have won a prize, between the 3rd and 5th working day of the month.

Likewise, if you are due to receive a payment because you have used up your holding balance, the group will notify you by email, text or post, depending on your stated preference.

Savers may wonder what would happen if you won the £1million jackpot and still had some of your holding balance left that part of this prize could use up.

The spokesperson said: "Agent Million will discuss with the £1million jackpot winner their preferences for payment which could payment into another NS&I savings account or a nominated bank account of their choosing."

Premium Bonds customers may be looking at other savings options as NS&I recently dropped the prize fund rate, down from 4% down to 3.8% from the April draw.

The odds of each £1 Bond winning currently stand at 22,000 to one. Customers may want to note that although the value of your holdings stays the same if you don't win any prizes, you are losing out in real terms as the value of your money is eating into by inflation.

Tom Francis, head of advice at , warned: "If you're thinking of them as a way to grow your savings or keep up with rising costs, they're probably not your best bet.

"They don't pay interest, so unless you win a prize - which most people don't - your money just sits there, losing value over time."

Wealth firm AJ Bell recently sourced some numbers from NS&I that showed two thirds of Bond holders have never won a prize, despite the average saver having more than £5,000 in Bonds.