Martin Lewis reveals how anyone with a bank account can quadruple their interest rate (and even get free cash!)
Martin Lewis has revealed how bank account holders can ‘quadruple’ their interest and earn thousands of pounds a year from their savings.
The money saving expert, 51, discussed interest rates on yesterday’s episode of ITV’s The Martin Lewis Money Show Live from Manchester.
Thousands remain loyal to their bank accounts for long-term convenience, but that could mean sticking with an interest rate as low as 1.2 percent.
The result is that savers miss out on significant interest rates that could earn them thousands of pounds over the course of a year – and all they have to do is switch from their current bank.
Speaking to the live audience, the money-saving expert advised Nationwide with an impressive interest rate of 8 percent.
Martin Lewis (pictured) revealed the best bank account for high interest rates on last night’s episode of The Martin Lewis Money Show Live
“Nationally, the most interest pays, eight percent per year, variable,” Martin said.
To encourage Brits to get into the habit of saving, the bank has offered the impressive interest rate to all Flex Regular Saver account holders.
By switching to Nationwide, every customer could enjoy an extra eight percent of their savings that year.
The bank does not require the holder to make regular deposits into the account, but if you do, contributions are limited to £200 per month.
If customers deposit the maximum amount every month for a year, they can earn an extra £103 in interest.
The incentives don’t stop there: the bank has also offered a £200 compensation to current account customers who use its new current account switching service.
The money saving expert also highlighted the benefits of the First Direct savings account.
Speaking to the audience, Martin revealed that Nationwide currently offers the highest interest rate
First Direct offers an interest rate of seven percent for a fixed term of one year.
Unlike Nationwide, monthly deposits are required between £25 and £300. As a result, the amount of potential interest earned is higher than nationally, with a maximum amount of £135 per year per £3,600 saved.
Martin explained: ‘You have to contribute every month, but you can… put £300 in a month, so in total you would earn more interest over the year because even though the rates are lower you are putting more money in in. .’
There’s also a bonus for new customers, as the bank will pay out an extra £175 to switch.
The money-saving expert revealed that by switching to Nationwide, each customer could enjoy an extra £103 every year for every £3,000 saved
It comes after Martin Lewis revealed the best savings account for those at risk of dipping into their nest eggs – and how to get £175 for free.
Ahead of his live show in Manchester last night, the 51-year-old money-saving expert appeared on ITV’s This Morning to answer viewers’ financial questions.
One caller, called Callum, called the program to ask how he could avoid dipping into his savings account.
The caller sends £200 to his savings every month, only to find that he withdraws the money towards the end of the month, rendering his efforts futile.
To answer Callum’s question, Martin revealed the best savings account with a seven percent interest rate on which cash withdrawals are prohibited.
First, the money-saving expert clarified the importance of budgeting when it comes to maximizing savings.
He said, “I would always make sure you have a budget done. Make sure you set an amount you want to spend, whether through a spreadsheet or by withdrawing a dollar amount, so your budgeting is accurate.”
Once that was in place, Martin recommended the First Direct Regular Savings Account.
First Direct is a banking division of HSBC and their savings account pays seven percent interest for up to twelve months.
Martin explained: ‘The bank has a regular savings account linked to it where you can put up to £300 a month and it pays seven per cent interest, so that’s whopping.’
There’s also a bonus for new customers as “it will cost you £175 to switch,” Martin said.
‘So you could get £175, and then you could have the next year’s fixed savings pot fixed at seven per cent,’ the money-saving expert added.
However, he warned: ‘You can’t take money out of it, so once it’s in, it’s there for the year.’