Martin Lewis shares best savings account to ‘maximise’ your money

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Martin Lewis gives advice on top easy-access accounts

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The money saving expert was joined by Angellica Bell on yesterday’s episode of The Martin Lewis Money Show, answering viewer questions on where they should keep their savings. Pensioners Jill and Barry called in asking if they should transfer their money from their cash ISA to an easy access account as they could be earning more interest.

Martin stressed that “there is no benefit” of a cash ISA unless people pay tax on their savings which not a lot of people do.

The only benefit of a cash ISA is that those paying the basic rate tax can get £1,000 worth of interest tax free.

He told the couple: “Standard savings easily smash cash ISAs, and on easy access it’s the same.

“You want to fix what you can in the interest rates I’m talking about and in easy access your Saga is one of the top payers if you want easy access.”

“Just go for the rate, forget the tax status in your case.”

Furthermore, the money saving expert went on to discuss the top easy access accounts giving people the best interest right now.

He mentioned people may want to consider Shawbrook Bank as they have a rate of 0.67 percent, with a minimum deposit of £1,000.

People can also use Cynergy which offers interest at 0.66 percent, or Marcus which pays 0.6 percent. Tesco Bank also offer savers 0.6 percent so there is a variety to choose from.

Shawbrook, Cynergy and Marus all offer their cash ISAs at the same rate as their easy access accounts.

Easy access accounts are useful for people who may need the cash at any time.

The money saving expert said: “These give you flexibility. You can withdraw money when you want but the rate is variable which means it can go up and down.

“The point about this is you have to monitor the rate and move if it isn’t good enough anymore.”

People should have “every penny in the place it gets you the most interest”, he explained.

Fixed may be more preferable as “it earns more”, however if people need access they can opt for an easy access, and if people can give notice on their money withdrawals, they can consider a notice account.

Martin said: “You can have as many accounts as you like, you don’t just need one. Put every penny somewhere that maximises what you can do with it”.

The money saving expert explained what top notice accounts are, and what the best deals are on the market right now.

With top notice accounts, people can’t take their money out when they want, they have to give notice.

Martin gave the example of someone going on holiday. They may choose a notice account as they can earn higher interest, and they can give the bank two months’ notice when they will need the money.

He recommended Secure Trust, offering savers 1.1 percent if they can give 120 day’s notice, or they can offer 0.85 percent for 60 with a 60-day notice period.

“That beats easy access,” he said.

Some current accounts do pay higher than easy access accounts, but only a small amount.

For example, Virgin can offer two percent on amounts up to £1000, or Nationwide FlexDirect which gives two percent on up to £1,500 for a year.

The money saving expert concluded: “Do check your local building society for regular savers as some of those have better rates.”

The Martin Lewis Money Show: Live continues on Thursday at 8.30pm on ITV.

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