Martin Lewis, founder of Money Saving Expert, has urged residents of the UK to check their savings accounts. The finance expert has turned his attention to interest rates, advising any savers who think they may be rewarded with lower rates: “don’t stand for it.”
The latest moneysaving.com newsletter from the founder points out the eye-watering extra £180billion UK households managed to save during the pandemic due to lower costs and working from home. However rock-bottom interest rates with no rewards are a thing of the past.
Mr Lewis says savings rates have leaped to their highest levels since July 2019 – meaning anything less than 1.5 percent means account holders are being underpaid. He said if people don’t act now, they could be at risk of losing out on a significant amount of money, reports ChronicleLive.
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He said: “The minimum savings should pay is 1.5% – as that’s what you can get in the top easy-access account. If you’ve not switched savings account in the last couple of years, you’re likely earning just 0.1% or less.
“Even if you opened a decent account a few months ago, as rates have increased, you’re still likely earning little more than half of what today’s top accounts pay. Though of course you know that, as you’ve already checked… sorry for going on about it.”
The financial guru is now encouraging people to check if they can get a better deal on interest rates. In his latest newsletter he has put together a list of options offering 1.2%, 1.5% and 2.3% if you can afford to put away cash for a fixed term.
He has also put together top tips for a first-time buyer or a saver under 16. The full details can be found here.
