Martin Lewis, Money Saving Expert, uses his multiple platforms to offer money-related advice, and recently turned his attention to interest rates. Appearing on his segment on BBC Radio5Live alongside presenter Nihal Arthanayake, Martin was on hand to answer a variety of questions and queries from members of the public. One important question related to interest rates, and what the best options currently available are.
However, if James and those like him with cash to save, wanted to consider alternative options, Martin also provided a run-down of the choices.
Martin continued: “Top normal savings options at the moment, firstly Monmouthshire Building Society at 0.45 percent, minimum saving of £25,000.
“Otherwise it is Marcus at 0.4 percent, which is protected up to £85,000.
“You also have a 95 day notice account with Moneybox that pays 0.6 percent, so good if you’re prepared to have 95 days to access it.
“You could always fix some of your money, have a fix with some of it and not with others. You can earn much more if you fix it.”
Under the Financial Services Compensation Scheme (FSCS) providers which have signed up to this programme will have their money protected up to £85,000 should the worst happen.
But with the Chip account Martin mentioned, there is a slight difference which he stressed savers should consider before pursuing this option.
Martin added: “With Chip, however, it is only your savings and not the interest which has the protection.
“This is why I say you have to do a bit more reading on it, because it can be complex.
“There are certainly a lot better options out there than the typical 0.1 percent, like you said.”
While in James’ case, he had maxed out his ISA allowance for the year, Martin said this option could be good for those who have to pay tax on their savings.
However, he did conclude by warning ISAs may not be worthwhile for individuals who do not need to meet a tax bill on savings, due to their low rates at present.
Martin Lewis is the Founder and Chair of MoneySavingExpert.com. To join the 13 million people who get his free Money Tips weekly email, go to www.moneysavingexpert.com/latesttip