Speaking on his BBC Sounds podcast, The Martin Lewis Podcast, the money expert said that some people could be “stuck” in poor saving accounts.
It comes as the Money Saving Expert discussed how the Bank of England has begun cutting interest rates but with many focused on mortgage rates dropping, a drop in interest rates has been ignored.
A while ago, interest rates on saving accounts were at the highest they’ve ever been, according to the Mirror.
But now, Martin Lewis says the highest is at an average of 5.13%.
Martin Lewis issues warning to anyone with a savings account
Speaking on his BBC Sounds podcast, Martin Lewis said: “It’s worth talking about savings for a minute as we have been talking about mortgages, but the mirror of what is happening with mortgages is, with mortgages variable rates have stayed high and fixed rates are dropping. The same is happening with savings.
“The easy access rates, which are the variable savings where you can put your money in and take it out, have stayed high but fixed rate savings had dropped.
“The highest access payer at the moment is at 5.15% and it’s the cash ISA from Trading 212. The next highest is now Oxbury Bank at 5.13% with a 90-day notice.”
Martin Lewis added that currently, it seems like interest rates are changing “day by day” sharing: “So if you’re looking to fix right now, there are no fixes available, apart from the one that’s a bit tricky, over 5%.
“So the question you have to decide when it comes to saving is, do I want to go for easy access savings? It’s expected that the Bank of England base rate will be dropping soon.
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“So most easy access savings will drop. The fixed rates that are available have factored in, to an extent, future drops. Just like with mortgages, savings fixed are based on long-term future predictions.
“So you might say ‘Hmm I could go easy access because I can get a slightly high rate’ or you might say ‘I’m worried those fixed rates are going to drop even further.
“I’m going to get them while I can access them’. So there’s actually a very mirror debate going on in savings about what you should do as there is in mortgages.”
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