Martin Lewis savings alert is one first-time buyers can't ignore

Martin Lewis has issued a new savings alert – and it's one which could prove useful to aspiring homeowners.

It's no secret that getting on the housing ladder in the UK isn't an easy feat, with soaring house prices meaning that Brits need to save tens of thousands in order to have a chance at putting down a deposit on their first home.

Fortunately, there are numerous tips and tricks you can utilise to make sure that your money goes further when saving.

This includes NS&I Bonds.

NS&I Bonds explained

Run by National Savings and Investments (NS&I), which is a government-backed scheme, these bonds offer Brits the opportunity to bank anywhere between £500 and £1 million with a strong interest rate – making it a solid option for future homeowners who aren't quite ready to make the first step.

NS&I bonds offer a safe, government-backed way to save (Getty Stock Images)

The government has also boosted the interest rates on savings accounts, making them more appealing than ever.

Martin Lewis recently flagged the interest increase in his most recent email, with his MoneySavingExpert site noting that you can get the following rates, depending on the number of years you fix your savings for:

• One year - 4.5 percent (increased from 4.07 percent)
• Two years - 4.48 percent (increased from 3.98 percent)
• Three years - 4.45 percent (increased from 4.02 percent)
• Four years - 4.4 percent (increased from 4.05 percent)

You can also choose to have the interest paid in one of two ways: into your current account or into the savings account, with the latter decision meaning the money remains locked away until the bond matures.

Which, of course, makes sense if you're trying to save money for a house further down the line, but may be of little use if you can't commit to a fixed term.

MSE also notes that some banks and building societies are offering competitive or even favourable rates to the NS&I scheme, which means it's worth shopping around before you make a final decision.

The accounts hold your cash for a fixed amount of time, making it a better long-term option (Mike Kemp/In Pictures via Getty Images)

If you're looking for an option which offers easy access, meaning you can transfer cash in and out whenever, there are also Premium Bonds.

Also run by the NS&I, Premium Bonds do not generate interest, but every £1 invested in the scheme is entered into a monthly prize draw.

This month's prize draw takes place today (1 May), with the results being announced on the NS&I website tomorrow.

Are Premium Bonds worth it?

Around six million prizes are given out through Premium Bonds each month, which sounds great until you factor in that over 22 million Brits up and down the country hold them.

The NS&I puts your odds at 23,000 to one for every Premium Bond you purchase.

Savings held in premium bonds also don't generate interest, meaning that you could end up losing money in the long run.