While many households have been struggling to make ends meet since the pandemic started, others whose incomes haven’t been impacted have managed to put more money away.

With many normal day-to-day activities on hold for now, and lots of us working from home, some people may now have more cash sitting in their bank accounts as a result. While splurging may be tempting, this could be a great opportunity to boost your savings or help clear existing debt.

So, what should you do with any extra money from lockdown?

Here, Laith Khalaf, a financial analyst at AJ Bell, shares five ways to use any extra lockdown cash…

1. Pay down credit cards

Paying down expensive debt is one of the best investments you can make. You may well be able to transfer expensive credit card debt to a provider who is offering 0% on balance transfers. You will need to qualify for the account, but if you can switch from paying a typical 17% rate to 0% with a bit of paperwork, that’s a no-brainer.

The introductory offer of 0% will only last for a limited period, after which much higher rates start to apply.

2. Pay down your mortgage

After you’ve paid off more expensive debt, it’s worth considering overpaying your mortgage. The yield on doing so will depend on the mortgage interest rate you’re paying and indeed the rate you will pay in years to come, which isn’t quantifiable right now.

Mortgage rates vary depending on the provider, term, and when you took them out, so check what rate you are paying. And many mortgages will only allow you to overpay a certain amount each year before you start to incur punitive charges.

3. Actively manage your cash

Shopping around for the best rate on your savings is always a good idea. You could also consider locking away your money for longer in a fixed term bond to harvest higher rates.

Keep an eye on the fixed rate bond market every now and then, because rates move around based on market expectations of interest rates. If there is a strong economic recovery, or inflation starts to climb, rates on fixed-term bonds with longer maturities may increase.

4. You could consider Premium Bonds

NS&I Premium Bonds offer the chance to win tax-free prizes every month, so what you’ll get back depends on how lucky you are. Part of their appeal is there’s a small chance you may win a big prize. But if you’re looking for guaranteed returns, then they may not be for you.

4. Set up an Isa

Every year, you have an Isa allowance which allows you to put £20,000 out of the clutches of the taxman. The deadline for cash Isas and stocks and shares Isas for this tax year is, as ever, April 5.

5. Top up your pension

If you’re able to leave your money invested for the long term, one option is to top up your pension. Check if your employer will match any additional contributions you make.