Martin Lewis has given an urgent warning to people with a savings or cash ISA account who may be able to “quintuple the interest in minutes”. The personal finance guru urged everyone to check their current rate now as they may be able to get four times the amount of interest with a different bank.
As reported by the Daily Record, the latest MoneySavingExpert.com (MSE.com) newsletter made the clear point that anyone earning below one percent on any money they have in a savings account needs to ditch and switch to stop being ‘ripped off’ 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 percent to 4.5 percent.
Martin wrote: “Millions of people have money in savings and cash ISAs, earning far less than 1 percent - with banks taking advantage of customer inertia. Stop 'em ripping you off. Check yours now.”
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He added: “You may be able to get quintuple the interest in minutes as the top savings fixes now pay nearly 5 percent (in fact, briefly they hit 5 percent but only via a short-lived deal on a special savings platform) and top easy-access near 4 percent. The cash ISA versions of each pay a little less.”
"In reality, with inflation at over 10 percent, 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,” he warned.
The team at MSE.com have put together 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, which you can read here. Their advice is simple: "Don't earn less than 3 percent 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 percent
Instant access
- Clearbank - Chip Instant Access - 3.71 percent
Cash ISAs
Easy access
- Yorkshire Building Society Limited Access ISA - 3.35 percent
Instant access
- Cynergy Bank Online ISA (Issue 36) - 3.5 percent
Notice
- Marsden Branch Cash ISA 180 (Issue 1) - 4.0 percent
One-year fixed-term ISA
- Secure Trust Bank 1 Year Fixed Rate Cash ISA (29.May.24) - 4.3 percent
Two-year fixed-term ISA
- Newcastle Building Society Two Year Fixed Rate ISA (Issue 87) - 4.4 percent
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 per cent 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 per cent.
"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 per cent, which currently beats the instant and easy access top rates in the market.”
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