Martin Lewis has urged anyone with a savings account to think about moving their money. The BBC Sounds podcast star and ITV regular, who presented ITV Good Morning Britain today, made the comments in the Money Saving Expert newsletter.
Mr Lewis said: “The top savings and cash ISAs from the big names are earning 5%. I often encounter reluctance from some to switch savings accounts even when they can earn much more as they haven’t heard of the top payers. However, most can still get massively increased interest from the big names. Here are the best deals.”
In the latest Money Saving Expert newsletter, he said: “I often encounter reluctance from some when it comes to switching savings accounts, even when they can earn a lot more doing so. They tell me, ‘I’ll just stick with my bank, I know it’s safe’. I understand this impulse because, after all, saving is about risk-free money.
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“So today I want to show that lots of companies I’ve never heard of can massively increase their income with reputable savings accounts, even if they don’t feel comfortable doing so.” According to Lewis, the top accounts are Yorkshire Building Society accounts, which offer 4.8 per cent on a minimum deposit of £1. This means savers can earn £4.80 in interest for every £100 saved per year.
Mr Lewis said: “Unless you’re in a bind, all you usually need to do is open a new account, withdraw any existing savings and put the money into the new account! And if it’s a big name that convinces you to do it – then do it.”
He added: “Ordinary savings accounts usually earn more than cash ISAs (although they are not easily accessible today), so unless you earn more than your personal saver allowance (eg £1,000 in interest per year for basic rate taxpayers), you should go for the higher rate. If so, start with cash ISAs.”
Tesco Bank offers 4.76% with a minimum deposit of £1. The Post Office offers 4.75% with a minimum deposit of £1. The best Cash ISA is Marcus by Goldman Sachs, which offers 4.75% on new savings only. Brits cannot transfer money from existing ISAs.
The Post Office offers 4.6% on new savings accounts and transfers from existing ISAs. The minimum deposit is £100. The best one-year fixed deposit is offered by MBNA (part of Lloyds Group), which offers 5.05% with a minimum deposit of £1,000.
Tesco Bank pays 4.91% with a minimum deposit of £2,000. The best one-year fixed-term ISA is Virgin Money, which offers 4.61% with a minimum deposit of £1. So that’s £4.61 interest per year for £100 saved. The best two-year ISA is Tesco Bank, which offers 4.6% with a minimum deposit of £2,000.
The best two-year Cash ISA term deposit is TSB, which offers 4.35% on a minimum deposit of £1, so savers can earn £4.35 in interest for every £100 saved per year.