Martin Lewis is urging millions of people with money in a savings account to “check it now” as they could be missing out on higher interest rates. In a special savings episode of The Martin Lewis Money Show Live, the consumer champion warned that the Bank of England is expected to cut the base rate on November 7, which means the number of high interest savings rates on the market will start to decrease.
The financial guru also covers the topic in detail in this week’ edition of the MoneySavingExpert (MSE.com) newsletter, but basically, if your return rate is around 5 per cent, get on a comparison site and find a better deal to help boost your savings. He told ITV viewers: “Savers, this is a crucial moment to act, check now what rate you’re earning, if it’s less than 5 per cent-ish, we need to sort it.”
In his savings ‘Masterclass’ on MSE.com, Martin said: “Millions are on pants rates, and can easily and simply move the money to where it pays more. And if you’re on a fix, diarise to act before it ends.”
Martin took viewers through a graph displaying the pattern of Bank of England base rate, explaining that it is currently at 5 per cent, but “there is a likelihood” that it will drop to 4.75 per cent on Thursday.
He added that following last week’s Budget, the base rate is forecast to be cut by a further one per cent over the next 12 months – which means lock your money in a high interest account now to ensure you’re getting the best return.
Martin explained how the top easy access accounts – those that let you withdraw money at any time without paying a fee – tend to follow the Bank of England’s base rate “closely”.
He then turned to fixed accounts, where your money is locked away for a specific period of time. These tend to be based on long-term forecasts based on Bank of England current projections.
A full list of the best deals can be found on MSE.com here.
Five easy access savings accounts to look at
Martin shared the top easy access accounts currently on offer:
- Santander – Edge Saver, 6%
- Coventry Building Society – 4.83%
- Co-op Bank – 4.59%
- Halifax – 3.9%
- Top cash ISAs – Trading 212, 5.17% and Moneybox, 5.17%
- Top normal saver – Chip, 5%
You can watch The Martin Lewis Money Show Live on the STV or ITV player.