Martin Lewis reveals the THREE best saving accounts ahead of possible interest rate hike

Martin Lewis, Money Saving Expert, appeared on This Morning today to speak about the anticipated rise in interest rates for the Bank of England.

He claimed at the Bank of England’s meeting it’s widely predicted to vote to increase interest rates on Thursday.

Martin revealed his advice for Britons in the wake of this change, including what that means if you’ve credit card, mortgage debt, or savings.

Martin said: “The sooner you act to protect yourself the better.”

The money expert added: “Of course nothing’s certain, there has to be a vote. Yet the source of the prediction is unimpeachable – Bank of England governor Mark Carney.

“Combine this with the fact inflation is at a five-year high, and while nowt’s certain, a rise from 0.25 per cent to probably 0.5 per cent looks on the cards.”

Martin wanted that Britons should take these key actions now.

What savings accounts are best for Britons now.

Martin said: “Low interest rates have punished savers, especially older people who saved hard and planned to live off the interest. So a rate rise is positive. 

“In fact, savings rates have already risen, as the market’s taken note of the general direction of travel. 

“Check your savings rates, if it’s less than 1%, it’s a rip off, move it.”

Best savings accounts now

Birmingham Midshires 

Pays 1.3 per cent AER variable, and it’s easy to access, so you can withdraw your money whenever you want.

The Post Office 

Pays a slightly less 1.27 per cent AER (1.02 per cent bonus for a year). You can save from £1 in all these accounts and they all allow unlimited withdrawals.  

The rates are variable so monitor them and be prepared to ditch and switch if they drop.

Atom bank

If you’re prepared to lock cash away without access you can earn more and get a guaranteed rate in a fix. 

Pays 1.8 per cent for 1 year or 2.05 per cent for 2 years.  

Hodge bank matches it for one year, Axis bank for two. 

These all have the full UK £85,000 savings safety guarantee.

Martin said: “If your money’s in a poor paying account now, just get it sorted while it’s on your mind. 

“Yet if you’re a regular switcher, fixing today may be premature if rates are about to rise – and fixing for longer is riskier if we see rates continue to move up after that. So it’s worth considering staying easy-access for the next few days, then fixing once rates have responded.” 

Martin issued the same warning last week for Express.co.uk.

The financial journalist listed more tips to prepare for the change in an article here.