CashNews.co
Martin Lewis offered a swift caveat before spotlighting the current top savings account deals, as he retracted one 5.25% offer.
The Money-Savings Expert shared a brief update on how the Bank of England base rate changes and forecasts have been impacting mortgages and savings, unveiling that the two products are “mirroring” each other.
He clarified: “In mortgages variable rates have stayed high and fixed rates are dropping, the same is happening with savings.”
Speaking on BBC Radio 5 last week, the finance guru kicked off the segment by showcasing the 5.21% cash ISA product from Trading 212 which is topping the market, followed by Investec’s 5.25% 90-day notice account.
However, mere hours later when he was assembling his radio appearance for his weekly podcast, the finance mogul had to issue an update.
He revealed that the trend-setting Investec account had “already been pulled from the market”, with Oxbury Bank now presenting the leading 90-day notice interest rate at 5.13%.
The expert cautioned: “As always with savings, we tend to see rates change by the day so you’re best to go and check what the best rates are for the different products at the moment you’re doing it. Products here are just an indication of what’s available.”
The MSE guru lamented the current state of affairs for those seeking to lock in savings at more than 5% interest, highlighting that options are disappointingly limited. He advised savers to weigh up the pros and cons of fixed savings rates against the flexibility of easy-access accounts.
On his podcast, Martin Lewis explained: “It’s expected that the base rate will be dropping soon so most easy access savings will drop. The fixed rates have factored in future drops, just like with mortgages they’re based on long-term future predictions. You might say; ‘Oh I could go with easy access and get the higher rates’.”
“Or you could say; ‘I’m worried those fixed rates are going to drop even further, I’m going to get them while I can access them’.”
He then highlighted Monument Bank offering a leading one-year fixed account at 4.81% interest, closely followed by Zenith Bank at 4.8%.