Martin Lewis issues urgent warning to everyone with a savings account to check it now
dailyrecord.co.ukMartin Lewis is urging everyone with money in a savings account to check how much interest they are making on it and warns that if the rate is under 2.5% then you need to act now to boost it.
The financial guru said that is the very lowest rate anyone should be earning, on any savings amount, following the Bank of England’s recent base rate hike to 3%.
In the latest edition of The Martin Lewis Podcast on BBC Radio 5live, the consumer champion explained that there’s a “savings rip-off” right now and that with inflation currently running at over 10%, most savings aren’t savings, they are in fact “losings” because the interest you’re earning - even in top savings accounts - is far less than inflation.
Martin told co-presenter, BBC Radio 5live’s Nihal Arthanayake: “Most people who have got savings are earning less than 1%, the average easy-access savings account is paying just 0.75%.”He continued: “I want to show you how to stop the savings rip-off and it is indeed a rip-off for most, you should not be earning anything less than 2.5% on your savings that is my absolute, complete bottom-out on the savings rate you should be getting.“With inflation running at over 10% at the moment, most savings aren’t savings, they are in fact ‘losings’ because in real-terms the interest you’re earning even in the top accounts is far less than inflation.“Now that isn’t a reason not to get the best savings interest rates, in fact, I would say it should put more of a fire up your backside because the more you earn in savings, the more you mitigate the damage of inflation on the cash that you have worked hard to store up over the years.”During the Podcast, Nihal Arthanayake checked his own savings rate and was flabbergasted to discover that it
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