The coronavirus (COVID-19) pandemic has seen the UK join a number of countries in a lockdown, with Prime Minister Boris Johnson having announced stringent measures to slow the spread of the virus on March 23. As well as the devastating consequences in terms of health, the crisis is having a financial impact too, and today Martin Lewis issued a savings update.

Addressing the changes on savings accounts, Money Saving Expert said: "This means everyone should CHECK NOW what they earn [in interest]."

Highlighting some good news, Mr Lewis has this week commented on NS&I cancelled planned cuts to interest rates, which was to have a knock-on effect on the odds of winning in the Premium Bonds prize draw.

The changes, which were set to come into effect from May 2020, had been intended to see the Premium Bonds interest rate drop by 10 basis points, from 1.4 percent to 1.3 percent.

Mr Lewis said on the topic: "Even at 1.4 percent tax-free, the Premium Bond prize fund rate isn't a no-brainer.

DON'T MISS

"While NS&I is a bastion of savings safety, unless you've £85,000+ saved, the protection isn't materially better than the normal UK safe savings cover.

"Nor is 'tax-free' a boost for most. Since 2016, the personal savings allowance means basic 20 percent rate taxpayers can earn £1,000/yr interest in any savings tax-free (higher 40 percent rate, £500). So fewer than one in 20 people have enough saved to pay tax on it.

"Compare rates, and while 1.4 percent beats the top easy access, it loses to the top one year fix, and most people do park cash in Premium Bonds for more than that.

"Yet even then, the Premium Bond prize fund rate isn't the same as an interest rate. Put £1,000 in for a year and you won't get £14 back, you can't; the smallest prize is £25.