Martin Lewis' 'perfect' saving method he says is 'not for most people'

Martin Lewis has shared his top tip for savvy savers, although he concedes it's best suited to those who are prepared to "be constantly on top of it".

On BBC Radio 5 Live, Martin reminisced about using rows of champagne glasses and the "cheapest possible pomade" to illustrate his optimal savings strategy for those keen to maximise their returns.

He likened the process to a tower of champagne glasses being filled by a bottle of bubbly. Savers should aim to fill the top glass - the account offering the highest return - before letting any excess spill over into the next-best option.

During the Martin Lewis Podcast, he detailed: "The perfect way to save is you pour your money into the account that pays the most. It might be tax-free, it might be because it only allows a small amount."

"Once you fill that, you trickle down to the next level then trickle down to the next level..", reports the Express.

However, Martin also acknowledged a significant caveat with this approach. He stressed that the effectiveness of saving in this manner relies heavily on "how hard you want to work" and recognised that his trickle-down method is "not for most people because it takes too much work".

He further cautioned: "The biggest sin in savings is that most decent rates only last for a year or so and then you have to be on top of it to ditch and switch when it ends."

"It's only for the type of people who will be constantly on top of it, maybe even modelling it through a spreadsheet to manage it well."

"Most people want a simpler solution with 2, 3 maybe 4 accounts at most but not going into 10 different accounts."

He also offered some essential advice for those who don't necessarily wish to spend too much time managing their savings.

Martin highlighted a few key principles for savers to remember: "Savings is one of the simplest things to sort out. You go and check your rate, unless you're locked into an account all you simply need to do is move your money to another savings account. Only slight caveat is if your money is in an ISA when you do a transfer and not a withdrawal."

"Let's start with the bog standard thing you look at, easy access savings. There's normal savings that usually pay better and cash ISAs. Cash ISAs are a tax-free savings account, where your interest is never taxed. You can put £20,000 in an ISA each year, if you're lucky enough to be able to max it out."

"The problem with cash ISAs is normally the top rates are worse than the top normal savings rate."