Why you need to review your savings account before November 2019
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- Hollie Richardson
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Money Saving Expert’s Martin Lewis has shared some more financial advice that you might want to check out.
As Brexit continues to cast its shadow across the nation, Martin Lewis has shared some financial tips worth considering as we prepare to depart from the EU.
Last Month, the Money Saving Expert founder advised people to open an ISA account with as little as £1 before the Help to Buy scheme’s deadline at the end of November.
Now, he has told people with savings to reconsider their savings account. This advice might not be for everyone, but it’s always worth considering.
Speaking on ITV’s Money Show on Tuesday (17 September), Lewis said it’s time to “switch and ditch” any low interest savings accounts. He also talked about switching if you experience bad service.
“My message is this: if you haven’t been given good service by your bank, go and give someone else a go,” he started.
“When you get bad service and bad information that means you lose out on money, don’t give them your custom and don’t let them keep your custom.”
Lewis continued: “I’m worried we’re at the start of what I’d call a race to the bottom. Instead of companies competing to be at the top of the best buy tables, they’re starting to withdraw accounts like they did in 2016 because they don’t want all that money flooding in, it’s just too expensive for them to do.
“The world economy is not in a great state. The UK is facing severe uncertainty and that means the city’s long term predictions of interests rates have dropped and the rates we get to save at tend to be based on those long-term predictions.
“Anyone with savings right now should be asking themselves: is my money in the right place?”
Lewis then gave specific examples, adding: “The bog-standard accounts, easy-access Marcus and Synergy are 1.45%. If you’re getting anything less like that you’re not earning enough. Ditch and switch.
“There is also Al Rayan bank which pays 1.6% easy access. It’s actually a Sharia account which means it follows Islamic law so interest is prohibited.
“Instead of an interest rate you get what is called an expected profit rate - no UK Sharia bank has ever not paid that out so that’s an interesting option.”
He concluded: “I cannot make it plainer. If you have savings, this is one of those pivotal times to make sure you are earning enough - because the opportunities for doing that - potentially - look like they’re disappearing.”
With all this in mind, it’s definitely worth reviewing the situation.
Images: Getty