Published On: Wed, Sep 18th, 2019

Martin Lewis Money Show reveals savings accounts ‘important warning’ for Britons

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Martin Lewis spoke to ITV audiences tonight about how best to deal with savings accounts at the moment. The MoneySavingExpert shared his advice on The Martin Lewis Money Show. He revealed the importance of making sure you’re earning enough. Lewis encouraged audiences to “ditch and switch” if their savings accounts were not offering enough interest. During the show, guest Joanne was keen to find out about the best savings accounts at the moment to put her savings in.

Joanne had put her “good whack” of savings in a three-year fix which ended last year. The bank then told her that because of Brexit she would only get 0.2 per cent interest on it so she should “leave it there and see what happens.”

Britons need to be aware of this happening as they could lose a “couple of grand” in interest with such banks.

“Today the top-paying easy access account is 0.5 per cent,” said Lewis. “In a fix, you could be earning just under 2 per cent. At 0.2 per cent you’d be getting nothing.”

Lewis shared his key advice with the guest: “Stop b****ing start switching,” he said.

“When you get bad service and information that means you lose out on money. On those occasions, don’t give them your custom and don’t let them keep your custom.”

On returning to the studio and the live audience, Lewis explained he has an “important warning” for Britons with money in savings accounts.

“In the last week or so, we saw the top payer Marcus Bank drop its interest rate from 1.5 per cent to 1.45 per cent and straight afterwards the other top payer, Synergy Bank did exactly same thing,” Lewis explained.

The problem is that long term predictions of interests rates have plummeted as the UK faces uncertainty.

“I’m worried we’re at the start of what I’d call a race to the bottom,” said Lewis. “Instead of companies competing to be at the top of the best buy tables they’re starting to withdraw accounts like they did in 2016 because they don’t want all that money flooding in, it’s just too expensive for them to do.

“The world economy is not in a great state. The UK is facing severe uncertainty and that means the city’s long term predictions of interests rates have dropped and the rates we get to save at tend to be based on those long-term predictions.”

Martin Lewis urged viewers to be vigilant when it comes to the whereabouts of their savings.

“You should be looking and seeing whether your money is in the right place,” the MoneySavingExpert said, revealing his best banks for saving at the moment.

“The bog-standard accounts, easy-access Marcus and Synergy are 1.45 per cent. If you’re getting anything less like that you’re not earning enough. Ditch and switch.

There is also Al Rayan bank which pays 1.6 per cent easy access. It’s actually a Sharia account which means it follows Islamic law so interest is prohibited.

“Instead of an interest rate you get what is called an expected profit rate – no UK Sharia bank has ever not paid that out so that’s an interesting option.”

Lewis also advised Britons to think about fixing. “Even though fixed rates have dropped, there is a potential they’re going to drop a lot further,” he predicted.

“If you want certainty, top one year fix is Arbuthnot bank which pays 1.86 per cent on a minimum £10,000. If you haven’t got that much there’s Metro bank at 1.85 per cent on a minimum £1,000.

“If you want longer – two years – there’s First Save which pays 2 per cent. I wouldn’t necessarily fix longer than that with what’s happening with the economy, it’s so uncertain.”

Lewis concluded: “I cannot make it plainer. If you have savings, this is one of those pivotal times to make sure you are earning enough because the opportunities for doing that – potentially – look like they’re disappearing.”

Earlier this month, Martin Lewis opened up about the best savings accounts for fixed-terms savers in the UK.

He also shared whether a Help to Buy Isa or a Lifetime ISA was better for savers.

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