Martin Lewis: Money Saving Expert on best savings accounts as more interest rates slashed | Personal Finance | Finance
Interest rates on savings accounts have generally been slipping recently, exacerbated further earlier this year by the two successive cuts to the Bank of England Base Rate – something which is now being maintained at a historic low of 0.1 percent. Following the announcement NS&I is going to be cutting interest rates on its easy access account Income Bonds in November 2020, Martin Lewis gave an update on savings options this week.
He said: “Marcus down from 1.05 percent to 0.7 percent – that’s coming in the next two weeks.”
Amid the cuts, the rates and savings providers taking the market-leading spot have changed.
Martin went on to list his latest top easy access savings options.
“We’ve got new top deals [but] they’re only top because the better ones have gone,” he remarked.
The Money Saving Expert said: “Coventry Building Society – it was Best Buy last week but higher rate – [pays] 1.05 percent, two withdrawals a year maximum, [is] easy access top.”
For those who want unlimited withdrawals when it comes to easy access savings accounts, there are different options – however these come at lower rates at the moment.
“You’ve got Yorkshire at 0.95 percent, minimum £10,000,” he said, “or Principality 0.8 percent, minimum £1.”
While easy access to savings may be a priority for some, others may be willing to put their money in a longer term option in order to get an interest rate that is fixed for some time.
“If you can lock in, because you want certainty without withdrawing your money, go for a fix,” he commented.
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“Best there? Atom [which pays] 1.18 percent on one-year.”
Martin went on to highlight how last week, the same fixed account paid 1.3 percent – adding that the difference “shows how quick it is changing”.
Alternatively, he signposted Kent Reliance offering a rate of 1.25 percent for two years, and a three-year fix with UBL paying 1.4 percent.
“All have the full UK savings safety – £85,000 per person per financial institution protection,” he added.
Despite cuts to interest rates, Moneyfacts.co.uk has said it has seen a surge in interest and demand for savings products from consumers and businesses.
Michelle Monck, Head of Digital at Moneyfacts.co.uk, said: “The recent rise in those looking for new savings accounts started after the announcement of interest rate reductions by NS&I.
“NS&I attracted millions of pounds in savings with table topping rates and is now cutting these to as low as 0.01 percent.
“Savers have moved their funds early to capture the best rates.
“There is still time to get a good rate, but savers will need to act fast as rates are slowly ticking down.”
The Martin Lewis Money Show Live is available to watch online now on the ITV hub.