Make Your Savings Work Harder: Martin Lewis’ Top Picks
Are you tired of watching your hard-earned cash sit idle in a low-interest savings account? Well, it’s time to take control of your finances and make your savings work harder for you. In a recent podcast, money expert Martin Lewis shared his top tips for getting the most out of your spare change.
According to Martin, the key to maximizing your savings is to split your money into two types of accounts: easy-access savings accounts and fixed-rate savings accounts. But before we dive into the details, let’s talk about why this approach is so effective.
Creating a savings fountain
The Easy-Access Approach
Easy-access savings accounts are a great place to start. These accounts allow you to withdraw your money whenever you need it, and they’re perfect for those who need frequent access to their cash. There are two types of easy-access accounts: normal savings accounts and tax-free cash ISAs.
While easy-access accounts tend to pay lower interest rates than other types of accounts, they offer the flexibility to withdraw your money at any time. And with interest rates as low as they are, it’s essential to choose an account that offers a competitive rate.
Stay on top of interest rates
The Fixed-Rate Advantage
Fixed-rate savings accounts, on the other hand, offer a guaranteed interest rate for a set period. This means that you’ll earn a higher interest rate than with an easy-access account, but you’ll need to keep your money locked in the account for the specified term.
Martin advises that fixed-rate accounts are ideal for those who can afford to lock their money away for a while. With a fixed-rate account, you’ll earn a higher interest rate than with an easy-access account, and you’ll have the security of knowing exactly how much interest you’ll earn.
Guaranteed returns with fixed-rate savings
Know Yourself
But before you start opening multiple savings accounts, Martin warns that it’s essential to know yourself and your financial habits. If you’re not disciplined about moving your money to a new account when the fixed rate ends, you could end up with multiple accounts earning low interest rates.
Understand your financial habits
In conclusion, making your savings work harder for you requires a combination of easy-access and fixed-rate savings accounts. By following Martin Lewis’ top tips, you can take control of your finances and start earning the interest rate you deserve.
Savings tips from Martin Lewis
