Money Saving Expert's Martin Lewis has urged everyone with funds in a savings account to check how much interest they are making on it as he says if the rate is under 1.5% then “you’re being underpaid - don’t stand for it”. Many of us have a savings account which we typically use to save away money, or use on a rainy day.
But according to the financial guru, we could be missing out on much better interest rates available right now. He encourages everyone to review their savings pot - big or small - to make sure they’re getting the most value for their money, reports The Daily Record.
Writing in the latest edition of the MoneySavingExpert.com newsletter, the founder of the consumer website said that UK households put an estimated £180 billion into savings accounts during the pandemic, using the money saved from typical travel costs and food expenses to bolster up rainy day funds.
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However, Martin pointed out that most people who did this were “hardly rewarded for it” due to “rock-bottom interest rates” during the tough economic period. He explained: “If you've not switched savings account in the last couple of years, you're likely earning just 0.1% or less.
“Even if you opened a decent account a few months ago, as rates have increased, you're still likely earning little more than half of what today's top accounts pay.”
And now that the cost of living crisis is putting the squeeze on household finances, many people will be considering using some or all of those savings to help mitigate the soaring costs of food, energy and petrol prices over the coming months. However, the consumer champion is encouraging people to check if they can’t get a better deal on interest rates elsewhere. He said: “The minimum savings should pay is 1.5% - as that's what you can get in the top easy-access account.”
To help everyone make the most of their money, Martin has listed a few options offering 1.2% and 1.5% plus one for 2.3% - if you can afford to put cash away for a fixed term. Full details of the savings accounts can be found in the latest edition of MoneySavingExpert.com here.
