Money mastermind Martin Lewis has urged savers to grab the best savings rates possible right now in the midst of cuts to interest rates which means most of the best deals have been impacted.
The money expert says those who have less than 5 percent interest on their savings shouldn’t accept earning less and should make a move to grab the best deals as soon as possible.
Speaking on his Martin Lewis Money Show Live on ITV1 and ITVX, Martin urged viewers: “Savers, check what rate you’re earning. If it’s less than 5 percent-ish, we need to sort it.”
And on Martin’s weekly MSE email, he added: “Top simple EASY-ACCESS savings pay 5%-ish – you shouldn’t be earning less.”
Firstly, Martin advises that the best savings account on the market right now is actually an ISA from Trading212. This allows you to deposit £20,000 each tax year tax-free and pays a hefty 5.17 percent interest rate because ISAs are not taxed on the first £20,000 deposited each year.
Trading212 is also protected up to £85,000 on deposits, so your money will be safe.
But the downside is that if you’ve used up all your £20,000 ISA allowance for the year, you’ll have to reach for a traditional non-ISA savings account.
In that case, there are several normal savings accounts that pay up to 5.1 percent on easy access.
Chip offers 5 percent, while Furness offers 4.9 percent and Coventry Building Society offers 4.83 percent, but is a more recognisable high street name.
Now is a good time to secure a savings account with a good rate because savings rates are likely to drop in the coming days and weeks, Martin urged.
He said your bank must give you “reasonable notice, which tends to be between 7 and 30 days if your savings are dropping.”
He added: “Reasonable notice, but it is a reasonable clause so doing it the next day is probably too swift but if you’ve got an online account and you’re notified with a week, it’s probably arguable that that’s reasonable.
“Depending on the product and exactly what type you’ve got, those rates that are variable if they’re dropping will be dropping somewhere between the next couple of days and the next month.”
