Martin Lewis: Top easy access savings accounts as Marcus and Saga slash interest rates | Personal Finance | Finance
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Martin Lewis returned to ITV on Thursday, hosting The Martin Lewis Money Show alongside co-presenter Angellica Bell. During the episode, the financial journalist, who is the founder of Money Saving Expert, was asked where savers could find the current top paying savings accounts.
“You’ll know recently it has been the Marcus and Saga account that’ve mentioned before.
“Both dropped their interest rates this week.Marcus to 1.05 percent and Saga to one percent.
“That’s still pretty high relative, would you believe.”
For those who are now looking for the highest interest rates on easy access savings accounts, Mr Lewis has now pointed out a different account.
However, he warned that it may not last for long.
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“Top easy access account on the market at the moment is RCI Bank at 1.2 percent. But I think that may drop,” he said.
For those looking for some short-term certainty, the financial journalist flagged a relatively high paying easy access account which requires customers to get a warning two months ahead of cutting rates.
This is with government-backed National Savings and Investments (NS&I).
The savings bank currently offers a 1.15 percent gross/1.16 percent AER rate on Income Bonds.
“There’s an interesting one which is NS&I, the state owned financial institution, 1.16 percent easy access there, and it has to give you at least two months notice to drop its rate, so you’ll get at least two months, probably more if you do easy access with it,” he said.
In terms of fixed rates, Mr Lewis said: “Top one year fix is the Habib Zurich Bank, 1.45 percent, I know the name may not sound like it but it’s a fully UK regulated bank so you get the £85,000 savings protection in that one.”
Marcus, operated by Goldman Sachs, has stated it is reducing the interest rate on its Online Savings Account from 1.20 percent to 1.05 percent AER variable.
For new customers, the new rates will apply immediately – as of May 13, 2020.
Exisiting customers will get at least 14 days notice of the change, Marcus representatives said.
The change will come into effect for these savers on May 30, 2020.
Any bonus rates that existing customers have signed up with will be unaffected.
Saga is also cutting interest rates – from 1.20 percent to 1.00 percent AER variable, with a bonus of 0.20 percent gross fixed for the first 12 months.
For new customers, the rates apply immediately from May 13, 2020, and existing customers can expect to receive a letter giving 14 days notice of the change – which will affect them from May 30.
Like the Marcus accounts, existing bonus rates are unaffected.
The Martin Lewis Money Show Live continues on Thursday on ITV at 8.02pm.
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