Martin Lewis encourages people with money in a savings account to check the interest rate now
Martin Lewis is keen to help people make the most of their money at the start of 2024.
Martin Lewis is encouraging everyone with a savings account to check they are not being underpaid as he warned interest rates have “peaked and are likely to drop further in 2024”. Writing in the first MoneySavingExpert (MSE) newsletter of the new year, the consumer champion encouraged people to check now to make sure savings are being fully maximised.
The advice is part of a comprehensive checklist created by the founder of the consumer website to help people start 2024 off on the best financial footing possible by making savings they may not have been aware of and giving themselves a “money-makeover” before the end of January.
Martin said the savings rates benchmarks to use are 5.22 per cent for easy access accounts and 5.3 per cent for fixed-rate accounts. He wrote: “Savings rates have peaked, and are likely to drop further in 2024, so check you’re not being underpaid now.”
Martin went on to explain how interest rates are linked to the Bank of England base rate, which he said is most-likely to fall throughout the year, according to the latest City predictions.
He added interest rates for easy-access accounts tend to move with the base rate while “fixed rates move more with likely future rates”. He highlighted the rapid decline in high interest rates and explained the top one-year fix is now 5.3 per cent, however four months ago it was an impressive 6.2 per cent – this was an NS&I rate that launched in September 2023.
Martin urged everyone to “check now what your savings are earning and make sure you’re maxing them”.
You can read Martin’s full list of money savings and deadlines tips for 2024 on MSE.com here.
Martin also urged people to check out MSE.com’s handy guides to the best savings and top cash ISA rates, which is updated regularly and explains everything you need to know about maximising your savings.
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