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Are you ready to make yourself some extra cash from your savings? Of course you are! Cue our favourite Money saving Expert, Martin Lewis, who has tracked down the best savings accounts at the moment.
Our the last few months a third of the population have saved more than they ever have before while staying home. However, historically low interest rates have not made this time a good time for savings accounts. So, in his regular advice slot on Friday's This Morning, the financial guru spilled the beans on the savings accounts offering the best interest rates. Whether you're saving for a new kitchen, extension, or a trolley dash in the Aldi Specialbuys aisle, you need to read this.
During the segment, the expert revealed that now isn't actually the best time to be saving. In fact spending might be a better use of your money. 'We have the lowest savings rates I remember since I've been a money-saving expert,' says Martin. 'If you have things you want to buy, keeping it in the bank now isn't the best thing, so buying them now maybe the best thing.'
We don't need much encouragement when it comes to shopping. However if you're dream buy is still financially out of reach Martin Lewis has some ticks up his sleeve to get the most for your money, even when interest rates are at a record low.
'If you are trying to save you have to be active and aggressive in terms of moving your money,' explains Martin. 'You're not going to do anything brilliant. I've not got a magic wand here, but there are certainly a lot of places that are less worse, compared to places that are severely bad.'
'Bizarrely, at the moment, the three top easy-access savings where you can put your money in and take it out when you want all come from the same place and that is the safest possible place to save,' says the savings Guru. 'The government owned savings institutions, NS&I.'
'Unlike normally, where I say savings are safe up to £85,000 per person per financial institution. Here the entire amount is protected by the government,' explains Martin.
And that savings protection is key – remember when banks like Northern Rock went bust? With this guarantee, if the financial institution were to go bust, your savings won't go up in smoke.
The reason it is paying the most amount is because the money goes to the government,' Martin adds. 'It has recently told NS&I, where its target for savings was £6 billion in March, it has now increased that too £35 billion. Which is why these rate are way above anything in the market because it is trying to bring the money in. That also gives us some good support that these rates are likely to stay high.'
'You've got NS&I income bonds which is the top payer at 1.16 per cent, minimum £500. You can put in and take out, its just got to be in bundles of £500. Its called an income bond because what that means is instead of the money being paid into the account, it is paid out each month so you can live on the income.'
'Next you've got NS&I direct saver, this is the simple one. It pays 1 per cent, minimum £1. Money in and out when you like. Money stays in the account and is compounded,' explains Martin. 'Then you've got the NS&I investment account, it isn't an investment at all, it is a terrible name, it's a savings account. It works like a direct saver, it only operates by post and that pays 0.8 per cent.'
However, Martin pointed out that these savers are currently very high in demand at the moment, so they might be tricky to open. But if you want to save they are the best rates.
'Those rates are variable,' adds Martin, but he is confident that these savings accounts will be the best buys or near the best buy rates for the next six months.
'My instinct is first they will have to give you two months notice before they drop the rates. But more importantly they are being pushed to bring money in, and you don't bring money in by dropping rates substantially.'
Sound advice indeed! What would we do without you Martin?
Amy Cutmore is Editor-in-Chief, Homes Audience, working across the Future Homes portfolio. She works on titles including Ideal Home, Homes & Gardens, Livingetc, Real Homes, Gardeningetc, Top Ten Reviews and Country Life. And she's a winner of the PPA's Digital Content Leader of the Year. A homes journalist for two decades, she has a strong background in technology and appliances, and has a small portfolio of rental properties, so can offer advice to renters and rentees, alike.
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