Martin Lewis, Money Saving Expert, often provides money saving tips to help Britons with their financial concerns. The financial journalist has been invaluable to many people, especially during the ongoing COVID-19 pandemic. Appearing on ITV tonight, Martin discussed the matter of interest rates, with the situation looking dire for savers.
Martin explained that this week, NS&I, the government-backed bank, decided to drop interest rates on many of its savings products.
This created chaos in the savings market as NS&I had offered best buy accounts for a number of months, even amid the financial crisis.
The Bank of England took the decision to reduce its base rate to 0.1 percent back in March, and the implications of this have had a knock on effect on popular providers.
With NS&I no longer offering leading rates, many Britons are likely to be looking for alternative options.
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Alternatively, some savers may wish to consider the Virgin Money Current Account to put their money away.
Martin said this account is currently offering a two percent interest rate on sums up to £1,000 – which could be enticing for many savers.
However, for those who are willing to provide notice to withdraw money from an account, then there may be another option.
The same bank, UBL is currently offering a one percent interest rate on its 35 day notice account.
This will, though, Martin said, drop to 0.75 percent on January 24, so it is worth staying alert as a saver.
Martin went on to explain that it may be better for those who wish to grow their money to lock their sums away.
At present, there are three top fixed rate deals leading the pack which the Money Saving Expert provided further insight into.
Tandem Bank currently has a 0.85 percent interest rate for money which is locked away for a year.
And JN Bank, which has only just started offering to British savers, but is fully accredited, has two options with attractive rates.
Savers locking away for two years can receive one percent interest, increasing to 1.2 percent for a three year fix.
However, Martin acknowledged there are still limited options for savers in terms of interest rates in the current climate.
They therefore may wish to consider alternative options which are at their disposal.
The Help to Save account can help Universal Credit claimants save up to £1,200, Martin explained.
And another key way to boost interest is to pay off any expensive debts, relieving a weight off the shoulders of many.
Finally, Britons may wish to consider a Lifetime ISA, which is a good, tax-free way of saving over a longer period of time and for specific goals.
Martin Lewis is the Founder and Chair of MoneySavingExpert.com. To join the 13 million people who get his free Money Tips weekly email, go to www.moneysavingexpert.com/latesttip