Martin Lewis reveals top easy access savings accounts
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
Last week, the Bank of England base rate increased 0.75 percentage points to three percent. Many people may be wondering if this rate will increase what they are being offered for their savings. On the Martin Lewis Money Show tonight, the money saving expert discussed the top easy access account on the market right now.
With so many options, he explained when people should “make a move” to maximise their savings.
He warned people to move their money if they have an account earning less than one percent, as they are being ripped off.
Unfortunately he said “this is the vast majority of people”.
When it comes to saving money, most people start with the “bog standard” easy access savings accounts as it allows for flexibility.
Savers can put their money in and take it out when they want, they can have large lump sums so it’s the “no brainer place to begin”.
He suggested the best places people can put their money right now.
He said: “There is a new best buy – it is Tandem and Atom bank- they are both app only and pay 2.55 percent.
“This is slightly ahead of Marcus and Saga that are both available online. That is 50p per £1000 extra interest over a year.
“For not online, Yorkshire Building Society is paying 2.5 percent but only up to £5,000, and only two percent for anything above that.”
He explained that some people may wish to move their savings into a cash ISA due to raised rates.
Mr Martin continued: “This is quite surprising, it only changed today at this rate. The top paying easy access cash ISA from Ecology Building Society is paying 2.7 percent which is higher now than easy access savings.
“Normally you wouldn’t bother with a cash ISA unless you are one of the relatively few people who pay tax on savings because it is tax free.
“Most people can earn £1,000 a year without paying tax on it anyway so they don’t need a cash ISA, but you can put up to £20,000 in there.
“So if you’re putting less than that in and you haven’t got a cash ISA this year, well that is the highest payer right now so put it in a cash ISA.
“It’s just an easy access savings account so take your money out when you want.”
Mr Lewis encouraged those who can lock money away to do so as this can double the interest they receive.
By putting money away for longer, they can benefit from a higher rate of interest.
He mentioned United Trust paying 4.6 percent for a one year fix.
Atom Bank is paying 3.55 percent for a six month fix.
The Martin Lewis Money Show is available on ITV Player.
Source: Read Full Article