Martin Lewis has urged those reluctant to switch saving accounts to consider moving their money to a ‘big name’ provider as they offer high interest rates.
Writing in the MoneySavingExpert’s Money Tips email, the financial expert explained that although .some people are reserved about switching providers, they can earn far more with well known named brands, eliminating any pre existing fear with switching bank accounts to lesser know providers.
As interest rates remain at 16 16-year high, and inflation falls to an almost three-year low, banks and building societies are offering some of the best rates Britons have seen in years.
Savers can now benefit from up to five per cent interest on certain easy access and regular savings accounts.
Lewis compiled a list of all the “big names” offering a whopping five per cent on savings.
He said: “I’m often met with reticence by some to switch savings even if they can earn far more. They tell me ‘I’ll just stick with my bank, I know it’s safe’. I understand the impulse, after all, saving is all about risk-free money.
Savers can now benefit from up to five per cent interest on certain easy access and regular savings accounts
GETTY
“So today I want to show that even if you aren’t comfortable with ‘I’ve never heard of em’ firms, many can still massively boost what they earn using big-name top savings.”
Top normal savings accounts
Yorkshire Building Society are offering 4.8 per cent with a minimum deposit of £1. So savers can get £4.80 interest a year per £100 they save.
Tesco Bank offers 4.76 per cent with a minimum £1 deposit.
The Post Office is 4.75 per cent with a minimum £1 deposit also.
Top Cash ISA
Marcus by Goldman Sachs offers 4.75 per cent for new savings only. Britons can not transfer money in from any existing ISAs.
Post Office offer 4.6 per cent for new savings and transfers from existing ISAs. The minimum deposit to pay in is £100.
One year fixed savings
MBNA (part of Lloyds Group) offers 5.05 per cent with a minimum £1,000 pay-in. So £5.05 a year per £100 saved.
Tesco Bank pays 4.91 per cent for a minimum of £2,000
One year fixed cash ISA
Virgin Money offers 4.61 per cent with a minimum £1. So £4.61 interest a year per £100 saved.
NatWest comes close behind offering 4.6 per cent but with a higher minimum deposit of £1,000.
Two year fixed savings
Tesco Bank offers 4.6 per cent with a minimum £2,000 deposit. So savers can get £4.60 interest a year per each £100 saved.
Alternatively, they can get TSB offering 4.35 per cent with a minimum £1 pay-in.
Two year cash ISA fixed
TSB offers 4.35 per cent with a minimum £1 deposit. So savers can get £4.35 interest a year per £100 saved.
NatWest offers 4.2 per cent with a minimum £1,000 deposit.
Lewis 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.”
All UK institutions have the same £85,000 per person savings safety protection, so if someone is putting away less, it will be UK-regulated and they are protected.
He added: “Normal savings usually out-pay cash ISAs (though not with easy-access today), so if you won’t earn over your Personal Savings Allowance (eg, £1,000 a year interest for basic-rate taxpayers) go for the higher rate. If you will, start with cash ISAs.”