Martin Lewis has issued an urgent warning to millions of people with money in a savings or cash ISA account, who may be earning “far less than 1%” despite many providers now offering around four per cent to savers. The consumer champion urged everyone to check their current rate now as they may be able to get “quintuple the interest in minutes”.
His message in the latest edition of the MoneySavingExpert.com (MSE.com) newsletter was clear - anyone earning below one per cent on any money they have in a savings account needs to ditch and switch to stop being ‘ripped off’ - simply by being loyal to their bank.
Martin explained that Bank of England interest rates are at their highest level for 14 years and another rise is expected to be announced this week (Thursday), increasing from 4.25 per cent to 4.5 per cent.
Martin wrote: “Millions of people have money in savings and cash ISAs, earning far less than 1% - with banks taking advantage of customer inertia. Stop 'em ripping you off. Check yours now.”
He added: “You may be able to get quintuple the interest in minutes as the top savings fixes now pay nearly 5% (in fact, briefly they hit 5% but only via a short-lived deal on a special savings platform) and top easy-access near 4%. The cash ISA versions of each pay a little less.”
The financial journalist warned: “In reality, with inflation at over 10%, all savings are currently ‘losings’, as your money's purchasing power is shrinking. But that's why it is so important to maximise every penny of interest, to mitigate the loss. Yet so many people are failing to do this.”
The team at MSE.com have created an in-depth guide to the best savings accounts options with Martin offering expert insights into ISAs, easy access, all-rounder access and fixed accounts currently available - you can read it here.
Their advice is simple: "Don't earn less than 3% at the very minimum”.
Top savings rates
Money.co.uk’s savings expert, Lucinda O’Brien, has also shared the latest interest rates being offered across the UK.
Money
Easy access
- Yorkshire Building Society Online Rainy Day Account Issue 2 - 3.6%
Instant access
- Clearbank - Chip Instant Access - 3.71%
Cash ISAs
Easy access
- Yorkshire Building Society Limited Access ISA - 3.35%
Instant access
- Cynergy Bank Online ISA (Issue 36) - 3.5%
Notice
- Marsden Branch Cash ISA 180 (Issue 1) - 4.0%
1-year fixed-term ISA
- Secure Trust Bank 1 Year Fixed Rate Cash ISA (29.May.24) - 4.3%
2-year fixed-term ISA
- Newcastle Building Society Two Year Fixed Rate ISA (Issue 87) - 4.4%
Commenting on the latest rates, Lucinda said: “Interest rates continue to rise for savings accounts, with fixed-rate bonds winning top rates again this week. Isbank via Raisin is offering 4.95% for its three-year fixed-rate bond and if you would prefer to access your money sooner, its two-year fixed-rate bond has a competitive 4.90%.
"We’ve also seen increases within notice savings accounts, which gives customers the opportunity to experience good rates without having to lock away their money for a significant amount of time. For example, Oxbury Personal 90 Day Notice Account is at 4.01%, which currently beats the instant and easy access top rates in the market.”
To keep up to date with the latest cost of living news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
READ NEXT
- How inflation drop to 10.1% will impact your household budget, savings and mortgages
Martin Lewis shares crucial mortgage tips for getting best deal if current fix due to end this year
People on Universal Credit can now get faster help from DWP for mortgage interest payments
Top tips for first-time buyers looking to step onto the property ladder this year
Check for Council Tax discount of up to £750 as new payments start this month
