Martin Lewis appeared on the Martin Lewis Money Show, offering savers of a whole host of different incomes some money saving tips. In the programme, which was dedicated to different savings accounts and options, the financial journalist met with some members of the public.
During the show, different people - a retired couple who said they had a “healthy” NHS pension and a retired nurse - explained that they had a lump sum of money.
Hoping to show them a way in which they could make their money work for them, Mr Lewis suggested placing the cash into an easy access savings account.
Diane, 60, wanted to know what to do with a lump sum of money she had.
The nurse explained that the amount was currently “stuck in a bank”, to which point Mr Lewis pointed out she was “earning nothing” in terms of interest on the savings.
Diane was quizzed on how long the money had been in the account, and said it had been about one and a half to two years.Martin Lewis spoke about savings accounts on The Martin Lewis Money Show (Image: GETTY)
Crunching the numbers, Mr Lewis suggested she could have lost “at least a couple of grands-worth of interest by doing that”.
Talking to the camera, the broadcaster said: “If you get a lump sum, while you are deciding what to do with it, put it in the top easy access savings account, and then do your thinking.
“First thing, do not leave it in your bank account. I hear it so many times. People who are retiring, people who are selling their houses.
“If you get a lump sum, the top easy access account while you take your time to think.
“At least it’s earning as much as it can be for your thinking time.”
Elsewhere in the programme, the presenter was asked by his co-host as the whether a person’s savings would be “safe” in the accounts he was talking about.
“Yes, everything I’m talking about is a UK-regulated savings account, which means you’re protected up to £85,000 per person, per financial institution.
“In fact, if you’ve had a life event say an inheritance or you’ve sold a house, you’re protected per person up to a million pounds per person for six months while you work out what you’re doing with the money.
Inheritance money is a topic which Mr Lewis has spoken about in the past, such as on This Morning last year.Martin Lewis spoke about ways in which a person may be able to make their savings work for them (Image: GETTY)
During a phone-in on the ITV show, ‘Ann’ explained: “My parents died this year and I have inherited a lot of money - just over £400,000.
“I’d like to know what to do with it. What do you suggest?”
Mr Lewis replied: “Well, first of all, I’m very sorry for your loss - most importantly.”
He then turned his attention to the matter of the money, and said: “You’ve got £400,000. The classic things you do with a large sum of money is first of all you clear all your debts.
“Get rid of all your debts before you think about anything else.”Martin Lewis Money Show: Some members of the public shared some of their money questions on the show (Image: GETTY)
He went on to explain that there is a time period in which a person does not have to worry about the protection of the Financial Services Compensation Scheme (FSCS) when storing substantial amounts of money in one account.
Under the scheme, the FSCS can pay compensation of up to £85,000 if a a UK-authorised bank, building society, or credit union is unable, or likely to be unable, to pay claims against it.
“When you inherit money, or when you have a life-changing event, you’re actually protected for six months up to £1million a year in one savings account,” Mr Lewis said.
“Normally you’re protected up to £85,000 per person per individual [account].
“But after a life-changing event - it could be inheritance, it could be selling a house - you get £1million protection for six months.
“So, the instant thing you’ll do is put that in the highest interest easy-access savings account you can,” he said before detailing some options as well as explaining what the person could do in the long-term.
The Martin Lewis Money Show continues on Monday at 8pm on ITV.