Martin Lewis' essential savings account tip to 'mitigate the damage of inflation'

Martin Lewis has shined a light on what he believes is the 'best buy' savings account right now - and is urging people to take advantage before it becomes unavailable.

Speaking on his podcast, the money-saving expert highlighted that people have more 'lucrative' options when it comes to shopping around for a savings account and that one in particular could help 'mitigate the damage of inflation'. He zoned in on the benefits of an NS&I which gives a one-year fixed savings account that is paying 6.2 per cent which is more than the best-buy fix for any other length of time.

An NS&I (National Savings and Investments), is a state-owned bank that offers Premium Bonds as well as other savings and investments including Direct Saver. Money invested in an NS&I is used by HM Treasury to manage the national debt by contributing to the government's finances.

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Mr Lewis noted that even though money placed in an NS&I is backed by the Treasury and therefore enjoys the same level of safety as other banks up to £85,000. Furthermore, the current limits on an NS&I stand at £1 million, which means you can throw in as much money as you want up to that limit.

He added that this is particularly beneficial to those who are putting their money away to make a big purchase on a house to see if market prices will go down in the coming months. According to Martin Lewis, there are two products in this scheme that are both locked at 6.2 per cent.

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The first is the Guaranteed Growth Bond which "pays a lump sum of interest at maturity" and the Guaranteed Income Bond which pays