Money Saving Expert Martin Lewis has urged savers to be “aggressive” and to switch their savings accounts to get the most from their money.
Speaking to Ruth Langsford and Eamonn Holmes on This Morning, the finance guru revealed a third of Brits have saved more than they ever have during the coronavirus pandemic and aren’t getting a lot in the way of interest.
He said: “If you’re trying to save, you have to be an active, aggressive, not towards people in call centres, but aggressive in terms of moving your money to keep it constantly where it is the best.”
You can see Martin’s advice in the video above.
Martin went on to reveal the best place to put your savings is actually in the government-backed NS&I, and revealed why their easy access accounts are likely to stay the best for some time.
“We have the lowest savings rates that I can remember since I’ve been a money saving expert,” he said.
“For mainstream savings, the three, top easy-access savings, which is what people normally want, somewhere you can put your money in and take it out where you want, all come from the same place and that is the safest possible place to save.
“It is the government-owned savings institution, NS&I, which used to be called National Savings, people will remember.
“Now because it’s owned by the government, unlike normally, when I say savings are safe up to £85,000 per person, per financial institution, here, the entire amount is protected by the government.”
When quizzed by Ruth on the chance of easy access rates could drop, Martin revealed the immense pressure the government has mounted on NS&I to make sure they don’t change.
“It does, those rates are variable, but, that’s the key to this, that’s the subtle thing, the government has said (to NS&I) raise nearly six times the amount of money, nearly £35 billion compared to £6 billion before.
“So that means, the people at the top of NS&I have been told effectively, ‘You better keep these at the best buy tables, because you need to raise a lot more money than you were raising before.’
“The way you raise money in the savings market is keep rates high, so my instinct is, first of all, they’d have to give you two months notice before they drop the rate, but more importantly, they are being pushed to bring money in, you don’t bring money in by dropping rates substantially.
“I think it’s very likely for at least the next six months, they will be the best buys.”
This Morning returns at 10am every weekday morning.