Martin Lewis says there is a 'sliver of hope' for savers
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Martin Lewis, Money Saving Expert, today appeared on ITV’s This Morning and had good news for those who are hoping to grow their cash. While the Bank of England base rate lowering to 0.1 percent in March 2020 knocked many accounts off their perch, there appears to be a slow return to more favourable rates. For those who are looking for the best deals, then, action will be necessary to secure these quickly and help one’s finances.
Martin explained: “There is a sliver of hope out there for savers at the moment.
“People think the economy is bouncing back, that means inflation could be coming back and interest rates going up.
“There is so much mortgage demand that banks are desperate to suck cash in from savers to lend it out at a much higher rate to those who want mortgages.
“That means we’ve seen a renaissance in savings rates.
“While they are still spit-worthily low, they are much better than they used to be and the top fixed rates are double what they were in March.”
One such example he cited was offered by Marcus by Goldman Sachs, a provider which has drastically increased in popularity in recent months.
The provider is currently top of the easy access table, offering a 0.5 percent interest rate, which is equal to that offered by a slightly less familiar provider – Cynergy Bank.
And for those who are currently saving with Marcus, Martin offered advice to help these individuals increase their interest rate even further.
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He continued: “There is a quirk to the Marcus system where you can actually up your interest rate with just a few clicks.
“Marcus pays 0.4 percent, but you can increase it to 0.5 percent by logging in online, clicking view next to your account name, selecting ‘review your savings’ and click ‘renew your bonus’ and your interest rate will increase.
“If you have Marcus savings and you’ve had them for a while, make sure you do that click and you get a little bit extra in interest.”
However, an important point to consider, Martin added, is that many individuals may be able to beat an easy access interest rate.
This is only possible, though, for those who are comfortable with locking away their money for a set period of time.
The Money Saving Expert pointed towards the top one year fixed rate account which is now over one percent, after this kind of account dropped to 0.5 percent in March.
Kent Reliance is currently paying 1.01 percent on its one-year fixed rate account with a minimum deposit of £1,000.
Zopa and Oxbury Bank are offering 1.15 percent for those willing to lock their cash away for a two year period.
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And for those who are worried about the security of their cash, these accounts are protected by the Financial Services Compensation Scheme (FSCS).
This means should the worst happen, a person’s savings up to a value of £85,000 are kept safe.
Martin concluded: “Savings rates are coming back and I would urge people to check what yours pays now.
“Most people watching this will be paying 0.1 percent or even less.
“You could potentially increase the amount of interest you are getting by ten times with just a little bit of action.
“Moving savings accounts as long as the money is not locked in is dead easy. Just go in, close the old account and put it in the new one.
“Just take action on your savings.”
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