23 May 2024 , 12:05
405
0
Martin Lewis has urged Brits to take advantage of high savings accounts and says they shouldn't have money in accounts paying less than 4%.
Over the last few months, the MoneySavingExpert.com (MSE) founder has urged people to take advantage of the higher savings as they could soon start to drop. In the recent MSE newsletter, Martin said he was often met with "reticence" by some concerned about switching providers to get a better savings rate - particularly if they were not a big banking name.
Martin said he "understood" the impulse, as saving is deemed "risk-free" money but noted all UK institutions have the same £85,000 per person savings safety protection, so he said it didn't matter who you saved with, as long as it's UK-regulated your money would be protected. Martin said those who were apprehensive were potentially missing out on major boosts to their cash pots. Adding: "Check your savings rates today, owt below 4% isn't enough."
To help people who aren't comfortable saving their cash with the "I've never heard of em'" firms, Martin highlighted some of the more mainstream banks which are offering savings products over 4%. He said: "Unless you're locked in a fix, all you usually need do to is open a new account, withdraw from existing savings, and put the money in the new one! And if it's a big name that'll convince you to do that - go for it."
Martin highlighted that at the moment, normal savings accounts are paying more than cash ISAs at the moment, although not easy-access accounts. Martin advised that if you won't earn over the personal savings allowance - which is £1,000 in earned interest for basic tax-payers - you should always go for the higher rate. If you will go over the allowance, go for an ISA. Below are the top savings accounts from big names according to Martin Lewis and MSE.
Martin Lewis’ MSE website shares tip to get free £175 and 7% interest on savings
Top normal savings accounts
- Yorkshire Building Society - 4.8% with a minimum deposit of £1
- Tesco Bank offers - 4.76% with a minimum £1 deposit
- The Post Office - 4.75% with a minimum £1 deposit
Top Cash ISA
- Marcus by Goldman Sachs - 4.75% for new savings only. You can't transfer money from existing ISAs
- Post Office - 4.6% for new savings and transfers from existing ISAs. The minimum deposit to pay is £100
One year fixed savings
- MBNA (part of Lloyds Group) - 5.05% with a minimum £1,000 pay-in
- Tesco Bank - 4.91% for a minimum of £2,000
One year fixed cash ISA
You can put up to £ 20,000 a year and the interest you make is not taxed. You can close it to withdraw early, but MSE warns that you will pay an interest penalty if you do (this is the same for the two year fixed cash ISA)
- Virgin Money - 4.61% with a minimum £1
- NatWest - 4.6% with minimum deposit of £1,000
Two year fixed savings
- Tesco Bank - 4.6% with a minimum £2,000 deposit
- TSB - 4.35% with a minimum £1 deposit
Two year cash ISA fixed
TSB - 4.35% with a minimum £1 deposit
NatWest - 4.2% with a minimum £1,000 deposit