Martin Lewis issues urgent savings update – but you need to be quick

MARTIN Lewis has issued an urgent savings update - but you need to be quick.

The Money Saving Expert founder said the National Savings offers the best fixed-rate savings account around.

This type of account locks away whatever amount of money you put in without access for a specified amount of time - but you get a high interest rate in return.

The state-owned NS&I, previously National Savings, offers a market-beating 6.2 per cent one-year fix.

With most banks your savings are only protected by the Treasury up to £85,000 - but every penny of your National Savings account will be backed by the government.

Writing on the , Martin said: "It's as safe as it gets - unless the UK itself goes bust, in which case we've all got bigger problems."

You can either set up a Guaranteed Growth Bond, which will pay you a hefty lump sum at the end of the locked-away year - or the Guaranteed Income Bond, which earns you interest each month.

If you need some extra cash soon, Martin recommends going for the income bond.

But he added that the National Savings fix is also great for Brits who want to put away as much as £1million away.

You will need to be quick - as Martin warned the best-buy savings account won't be available for long.

The state-owned savings giant is currently tasked with raising £7.5billion for the Treasury.

That sounds like a huge figure - but if the new account is popular, it might not be around for long.

National Savings is not allowed to distort competition by beating the market in the long-term.

Martin said: "This may well in hindsight be the perfect time to lock in."

How can I find the best savings rates?

With your current rates in mind, don't waste time looking at individual banking sites to compare rates - it'll take you an eternity.

Research websites like MoneyFacts and price comparison websites such as Compare the Market, Go Compare and MoneySupermarket will help save you time and show you the best rates available.

These sites let you tailor your searches to an account type that suits you.

It's also worth considering opening an Individual savings account (Isa).

These can pay high interest but come with high withdrawal fees and are unlikely to be beneficial if you've less than £65,000 in savings.

However, Lifetime Isas are great for anyone aged 18-39 hoping to buy a house or save for retirement.