MoneySavingExpert Martin Lewis is urging everyone in the UK to check their savings accounts no matter how much they have set aside and has also shared advice on how to maximize it.
The personal finance expert said anyone with a savings pot should earn at least 1.5%. He warned that customers could miss out on much better interest rates as they get closer to 3%.
Speaking in the latest edition of the MoneySavingExpert.com (MSE) newsletter, Martin warned that if your current rate is generating less than 1.5%, you must act now to increase it. He stressed that it has “never been more important to maximize every penny of savings interest” amid the current cost of living crisis.
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He said: “It has never been more important to maximize every penny of interest from savings. With runaway inflation, in real terms, money from savings is shrinking.
“To mitigate the impact, you need as high a rate as possible.” Martin pointed out that best deal rates were going up and also pointed out that savings rates don’t tend to “bounce” the same way mortgage rates do.
He said that even after five base rate increases, some savings rates are still paying 0.01%, so everyone should “check what you’re getting as soon as possible.” Martin shared a handy list of savings to know, which includes easy-to-access savings that are a popular choice for people looking for flexibility and the ability to invest and withdraw money when they want. wish.
The guide highlights current offerings from:
- Hunting – 1.5% AER
- M Plus from Virgin Money – 1.56% AER
- Atomic Bank – 1.35% AER
- Aldermore – 1.35% AER
Find more details on today’s top easy-access savings accounts on MSE.com here. Martin also shared the best fixed rate savings accounts today, learn more here.
Another option for many low-income people is the savings assistance program.
Help to save
Earlier this month, Martin encouraged people claiming universal credit or tax credits to look into an ‘unbeatable’ bonus scheme offered by the UK government after a money-saver fired the champ consumers on social media for sharing details about it.
The savings scheme offers people the chance to earn a maximum bonus of £1,200 over a four year period, but how much you get back is entirely dependent on how much you invest each year, as the 50% bonus is based on your highest total savings. amount.
Below is everything you need to know about the program, but it’s also worth noting that you can open an account now without making a deposit.
What is savings assistance?
The Savings Assistance account is a device to which millions of people with low incomes, or benefiting from certain advantages, could be eligible. This is a state-run scheme which allows those eligible for Working Tax Credits or Universal Credit to earn a 50p bonus for every pound saved over a period of up to at four years old.
It is also possible to withdraw the money from the account, but there is a catch – the bonus payment is based on the highest amount you have invested. Even if you can’t put money aside just yet, open an account anyway, as long as you qualify, because you don’t have to put money into it.
How the savings assistance program works
The scheme allows certain people eligible for the in-work tax credit or universal credit to get a bonus of 50p for every pound saved over four years. Help to Save is backed by the UK government so all savings from the program are secure.
How Payments Work
You can save between £1 and £50 per calendar month; you don’t have to pay every month. Payments can be made by debit card, wire transfer or wire transfer.
You can pay as many times as you like, but the maximum you can pay per calendar month is £50. You can only withdraw money from your Savings Help account to your bank account.
How bonuses work
You get bonuses at the end of the second and fourth years – these are based on how much you have saved.
What happens after four years?
Your Savings Aid account will be closed four years after it was opened. You will not be able to reopen it or open another Savings Help account.
You can close your account at any time. If you close your account early, you’ll miss your next bonus and won’t be able to open another one.
Eligibility
You can open a Savings Assistance account if you are:
-
Benefit from the Labor Tax Credit
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Entitlement to working tax credit and child tax credit
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Claim Universal Credit and your household earned £604.56 or more from paid work during your last monthly assessment period
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Get couple payouts. You and your partner can apply for your own savings assistance accounts – you must apply separately
You must also live in the UK.
Will this affect my benefit payments?
You can continue to receive tax credits or universal credit while saving with Help to Save.
What happens if I stop claiming benefits?
You can continue to use your Help to Save account. For more information and to set up your Help to Save account, visit the GOV.UK website here.
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