Martin Lewis was back on ITV this evening with more ways to save cash. The Martin Lewis Money Show Live host gave a little tip that not many people will be aware of, benefiting anyone who has recently sold a house or had an inheritance.
On the ITV show's virtual wall, Sandra from Barnsley explained that she just sold her house for £490,000. She asked Martin where she should keep her money until she finds a new property, within the next 12 months.
The viewer explained that she wanted a savings account where she would still be able to access her money whenever she liked. Martin replied: "Now, I talked earlier about savings safety protection."
He explained that with that scheme, savings are protected up to £85,000. However, Martin shared that there was an alternate option for situations such as Sandra's.
The Money Saving Expert continued: "There is a little known rule called the lifetime event rule, that applies when you've sold a property or had an inheritence or other similar things.
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"It actually says you're protected in one financial insitution up to £1million for six months after a lifetime event.
"So technically you could put this all in one place and if the worst happened you would be covered."
Martin went on to share how to avoid paying tax legally on any interest gained. He advised: "The first thing you need to do is look at putting it into a cash ISA, which is a tax-free savings account."
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He continued: "After that, you're going to want a mix of putting it in places that either invest in short term fixes to get higher rates. There's a no-notice account, I didn't mention earlier because you need a minimum of £20,000, Santander International Savings Platform Prosper that pays 5.2% but you need to give 90 days notice to withdraw your money.
"The other thing I would look at is those savings platforms I mentioned so you can move your money to where it would grow the most.
"It's big money if you move your money to the right place."
