Martin Lewis issues warning to anyone with in interest accounts

Martin Lewis has issued a call to savers to take action immediately to maximise their finances, following the Bank of England's announcement earlier in the month that the base rate would decrease from 5 to 4.75 percent - marking the year’s second cut. The BoE’s base rate plays a critical role in determining the borrowing costs for other lenders which impacts customer charges for loans, mortgages, and importantly, affects interest rates for savings accounts.

On his well-known BBC podcast, Martin said: "My big message for anyone with savings right now is that you need to check what interest rates you are paying... The fact that you had a good account a year ago doesn't mean it is anymore."

Adding to his advice, the financial guru and TV star recommended that anyone receiving less than five per cent interest on their savings should search for better options as many top easy access accounts currently offer about five per cent, allowing penalty-free withdrawals. Martin further suggested considering fixed rate savings accounts, explaining: "The difference is you get an absolute guarantee of what the rate will be for a set term, but in order to do that you need to lock money away."

Currently, there are several fixed-term accounts on the market offering interest rates of around 4.7 per cent. Although this may be lower than some instant access accounts, your rate would remain stable even if the base rate falls.

The main consideration with fixed-term accounts is ensuring you can forgo access to your funds for the duration of the term, such as one year. For those interested in the latest financial tips and top deals, signing up for our Money Newsletter is recommended, reports the Mirror.

Martin Lewis has suggested that regular savings accounts could be a smart option, with some offering interest rates as high as seven per cent. Despite the attractive rates, it's important to note that these accounts typically have monthly deposit limits, which are often lower than other types of accounts.

"Most of the best deals here are linked to your existing bank accounts," Martin noted.

For individuals receiving Universal Credit, the Help to Save scheme, supported by the government, might be worth considering. This scheme allows users to save between £1 and £50 each month, and after two years, savers receive a bonus of 50 per cent on the highest balance they've managed to save.