Martin Lewis reveals how you could earn 100x more on your savings

Martin Lewis reveals how you could earn 100x more on your savings

SAVERS have been warned by Martin Lewis to check the interest rate on their accounts now as they could be earning next to nothing. In Mr Lewis̵

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SAVERS have been warned by Martin Lewis to check the interest rate on their accounts now as they could be earning next to nothing.

In Mr Lewis’ latest The Martin Lewis Money Show episode, which aired on ITV last night, he said: “Roughly half of you have money in old accounts at spit-worthily low rates.

The Money Saving Expert warns people with a lot of cash to split their savings between different providers
Rex Features

“Always keep on top of savings and mortgages rates as they can move and if you don’t know you could be ripped off.

“Everyone should check their rates now as they might be able to up them.”

Check for better rates

The calls by the Money Saving Expert came after he met a couple earning just 0.02 per cent – around £20 a year – on their £150,000 savings.

BEST BANK ACCOUNTS FOR SAVINGS

AS you can now earn interest tax free on any accounts and not just Isas, some savvy savers have been using current accounts to get a cash boost.

Here are some of the highest-paying current accounts around.

Nationwide FlexDirect – You’ll get 5 per cent on balances up to £2,500 for the first year you have the account before it drops to 1 per cent.

You’ll have to pay in £1,000 a month to qualify for the interest.

Tesco Bank Current Account – This pays 3 per cent on balances up to £3,000, until 1 April 2019 (at the earliest). To get the interest you must pay in £750 a month and pay at least three direct debits from it each month. However, you are allowed to open two accounts, so you could get 3 per cent on up to £6,000.

TSB Classic Plus – You’ll get 5 per cent with TSB but only on balances up to £1,500.

But Martin told the couple, Richard and Lynn, that if they moved their cash they could up their interest to make a whopping £3,000 a year – more than 100x what they’re currently earning.

He said: “You’re earning about 0.02 per cent on your current money which is just awful.

“The top easy-access savings account at the moment pays 1.35 per cent. So put it all in there and you’d have made just under £2,000.

“While the top fixed savings account is 2.05 per cent for one year. So put it all in there and you would have made £3,000.”

And rates have shifted since Martin recorded the programme meaning savers can now earn even more on their cash.

Martin (pictured with co-host Angellica Bell) said on his TV show this week that savers need to check if they can boost their cash
ITV

According to Martin’s MoneySavingExpert.com website, the current top easy-access savings account pays 1.55 per cent with ICICI Bank, while the best one-year fixed account pays 2.01 per cent with OakNorth.

Check out The Sun’s best savings accounts for 2019.

Use an Isa if you’ve got a lot of cash

Mr Lewis also highlighted that basic rate taxpayers can earn £1,000 worth of interest tax-free, while higher rate savers can earn £500 tax-free (additional rate taxpayers don’t get anything).

He said this means basic rate taxpayers can earn about £60,000 worth of savings before it’s taxed and higher rate taxpayers can earn about £30,000.

If you have any more cash than this, like the couple in the programme, Martin advises sticking it in a Cash Isa as any interest earned here isn’t taxed.

Mr Lewis said to Richard and Lynn: “It’s worth you both opening up a Cash Isa, which is just a savings account that you don’t pay tax on and it doesn’t count towards the £1,000 worth of interest you’re allowed.

Martin (again pictured with co-host Angellica Bell) also warns savers that cash is only protected up to £85,000 per financial provider
ITV Press Handout

“They could each put a maximum of £20,000 a year in an Isa earning interest on £40,000 in total un-taxed.”

The top easy-access Cash Isa rate is currently 1.45 per cent with Virgin Money. Check out The Sun’s top easy-access Cash Isas for more information.

Split lump sums into chunks of up to £85,000

In addition, Martin pointed out that you’re only protected up to £85,000 per person, per financial institution under the Financial Services Compensation Scheme.

So it’s risky to save a large lump sum in one place. This mean you should split your cash between different providers to keep it safe.


Martin Lewis recently revealed his “comping” top tips as one mum wins £75,000 worth of freebies.

The Money Saving Expert also reveals how to save THOUSANDS of pounds on your mortgage.

But Martin Lewis was recently forced to sue Facebook after fake ads using his face appeared on the social network site.

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