Martin Lewis in top savings account alert amid Bank of England predictions
Martin Lewis shared a quick caveat before highlighting the current top savings account offers as he backtracked on one 5.25% offer
by Samantha Leathers · Birmingham LiveMartin Lewis shared a quick update on how the Bank of England base rate changes and predictions have been affecting mortgages and savings, revealing the two products are “mirroring” each other. He explained: “In mortgages variable rates have stayed high and fixed rates are dropping, the same is happening with savings.”
Talking to an eager audience on BBC Radio 5 last week, the Money-Savings Expert started the segment highlighting the 5.21% cash ISA product from Trading 212 which is leading the market followed by Investec’s 5.25% 90-day notice account. However, just hours later when he was compiling his radio appearance to slot into this weekly podcast the finance mogul had to make a correction.
He explained that the trend-leading Investec account had “already been pulled from the market” with Oxbury Bank now offering the top 90-day notice interest rate at 5.13%. The expert warned: “As always with savings, we tend to see rates change by the day so you’re best to go and check what the best rates are for the different products at the moment you’re doing it. Products here are just an indication of what’s available.”
As for said products, the MSE founder, unfortunately, pointed out that people looking to fix for more than 5% interest right now will find themselves have incredibly slim pickings. Instead, he urged people to consider whether they want a fixed savings rate or if they are okay with handling the variability of easy access.
He continued on the Martin Lewis Podcast: “It’s expected that the boe base rate will be dropping soon so most easy access savings will drop. The fixed rates have factored in future drops, just like with mortgages they’re based on long term future predictions. You might say; ‘Oh I could go with easy access and get the higher rates’.
“Or you could say; ‘I’m worried those fixed rates are going to drop even further, I’m going to get them while I can access them’.” Martin then pinpointed Monument Bank as the top one-year fixed account at 4.81% interest while Zenith Bank was startling close behind at 4.8%.