Martin Lewis gives critical advice for savings accounts as interest rates held

The Independent

Martin Lewis has issued advice to those with savings accounts as interest rates held for the first time in two years.  Speaking on Good Morning Britain on Friday (22 September), the MoneySavingExpert told those thinking about getting a fixed savings account to “open an account now” and fund it at the very last minute before its cut-off period for taking money out.  “We think, nobody knows... the top fixed savings rates are likely to shave down a little bit,” Lewis said.  The advice came after the Bank of England bank voted to keep rates at 5.25 per cent, ending a run of 14 consecutive hikes.

Transcript

00:00 If you go and open a fixed savings now, you normally have a week or two weeks or in some

00:05 cases up to a month in which to fund it and you can still take your money out if you change

00:10 your mind.

00:11 So what I would suggest people do now, those who've been looking at getting fixed savings

00:15 where they were able to lock their money away for a year or two years or three years, is

00:19 you go and open a top fixed savings account now.

00:22 Open it, but if you want to see what's going to happen, whether interest rates and other

00:26 savings rates are going to come down, you don't fund it until the last minute.

00:30 So you can have the facility available at today's high rates and if rates do drop, you

00:35 can plonk your money in there and you're locked in on that rate for a year or two.

00:39 And if rates don't drop or even if they went up the other way, unlikely, but it could happen,

00:43 markets move all the time, well then you just open another account and you don't put your

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