Martin Lewis has provided an unusual tip which could help people save £1,000s following the news that interest rates on savings accounts are to be slashed.
MoneySavingExpert.com founder Martin Lewis returned to ITV this evening where he offered finance tips on his eponymous The Martin Lewis Money Show.
The finance guru was joined on his hit show by Angellica Bell for another round of advice on family finances, jobs and consumer rights, including the latest deals of the week and tips on making money go further.
Martin told viewers he was interested in the "practical, not the political" so aimed to offer guidance to viewers on how issues such as the major savings account changes and Chancellor Rishi Sunak's job support scheme may affect everyday people.
The 48-year-old finance whizz said savings accounts are "in crisis", with 24 million savers about to have their savings interest rates slashed.
National Savings & Investments (NS&I) has announced plans for dramatic cuts to the interest it pays on many of its savings accounts, including Income Bonds, Direct Saver and Premium Bonds.
Sharing the news on social media, Martin called it "a devastating blow for savers."
This evening, Martin was asked what the best savings account is right now but he said this was "the wrong question".
The money expert explained a Help to Buy ISA and Lifetime ISAs are "unbeatable" savings accounts for people to look into, due to the government support for them.
One viewer then asked if it was worthwhile making overpayments on their mortgage as opposed to paying into a savings account while the savings interest rates are so low.
Martin said the "short answer" was yes. He said many people are often "surprised" to find themselves saving thousands through making overpayments on their mortgages.
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He advised people to use a mortgage overpayment calculator to check what benefits they could enjoy.
Before overpaying your mortgage, he stressed you should check whether your lender allows you to overpay it penalty-free, and if there are any limits on how much you can overpay.
It's also worth ensuring any overpayments you make go towards reducing the debt and therefore shortening the term, as opposed to reducing your monthly payments.
*The Martin Lewis Money Show: Live airs on ITV
