With the Bank of England Base Rate currently being maintained at a record low of 0.1 percent, keeping on top of the bank accounts offering market-leading interest rates on savings may well be a priority for many. It certainly is a topic of interest for one This Morning viewer, Ruth, who contacted Martin Lewis about the matter today.
The Money Saving Expert then addressed some alternatives for those who wanted to make a one-off or larger deposit.
“If you want to put a lump sum in, then depending on the amount, HSBC, Santander and TSB are all 2.5 to three percent,” he pointed out.
“So they’re all the next competitors.”
He went on to explain how the different types of accounts could suit different situations
Martin told viewers: “So if you’re putting money away monthly it’s Halifax.
“If you just want to put a lump sum in and it’s a bigger amount, then you’re looking at the Santander, HSBC and TSB [accounts].”
Elsewhere in savings news, rate reductions on a number of NS&I savings products will come into force next week.
The changes were announced back in September 2020, and they will be effective from November 24.
Speaking in September, Ian Ackerley, NS&I Chief Executive, said: “Reducing interest rates is always a difficult decision.
“In April we cancelled interest rate reductions announced in February and scheduled for May 1.
“Given successive reductions in the Bank of England base rate in March, and subsequent reductions in interest rates by other providers, several of our products have become ‘best buy’ and we have experienced extremely high demand as a consequence.
“It is important that we strike a balance between the interests of savers, taxpayers and the broader financial services sector; and it is time for NS&I to return to a more normal competitive position for our products.”
Among the products undergoing the cuts is NS&I’s Income Bonds.
Income Bonds will reduce by 114/115 basis points from 1.15 percent gross/1.16 percent AER to 0.01 percent gross/AER.
The Premium Bonds annual prize fund rate will also be affected.
It will reduce by 40 basis points, from 1.40 percent to one percent.
This will impact the odds of winning per £1 Bond number – changing from 24,500 to one to 34,500 to one.
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