Martin Lewis says you must check your savings accounts as interest levels rise

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Martin Lewis was back on TV telling viewers to check their savings accounts following a boost in interest rates.

Speaking on ITV's Martin Lewis Money Saving Show on Thursday (November 11) the finance wizard shows how much deals have "massively improved" and you could get more cash by switching.

"I'm still not saying they're great rates but they've gone up a lot," the MoneySavingExpert founder says.

He continues: "Back in March, the top easy-access account paid 0.4% now it pays 0.67% so that's the same interest but over half as much on top.

"The top two-year fix was just 0.74%, now that pays 1.6% so that's over double what it did pay," he explained.

"Now the reason why some of these rates have gone up is that long-term predictions of interest rates have gone up and that's what these are set on and there is competition in this market when there wasn't before."

Martin finds it "fascinating" that fixed-rates are more competitive than easy access and says the former are a "good bet".

An easy-access savings account is one you can dip into whenever you need to, whereas you'd likely pay a fee to withdraw money from a fixed-rate account before the term was over.

Martin adds: "The problem with all this though is that none of these rates are even close to inflation.

"That means savings accounts are still 'losings accounts' but you still want the best possible rate you can get because it mitigates rising prices.

"If you've got savings, go and find out what interest rate you are paying and then compare it to the rates below".

Martin's top one-year fixed accounts are:

Standard savings – Zopa, 1.35% (minimum £1,000)

Cash ISA – Hampshire Trust, 0.95% (minimum £1) and you can withdraw but there's a 90-day penalty.

Martin's top two-year fixed accounts is:

Standard savings – SmartSave, 1.6% (minimum £10,000)

  • Martin Lewis
  • Money

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