Martin Lewis, 48, has regularly advised savers to turn to NS&I as the Government-backed organisation provided the market’s top easy access savings rate but this will soon be changing. Martin has warned savers NS&Is “best-buy” accounts will be cut to “near zero” in the coming days.
“While the interest is low, it’s still 70 times what many other accounts pay. Yet easy-access rates are variable, so can, and currently do, often change rapidly.
“As noted below, Virgin Money pays 2 percent – but on its current account, not savings, and you only get that rate on up to £1,000.
“You don’t need to switch to it to get the interest, but if you do, it also gives you 15 bottles of wine worth a stated ‘£180’.”
For those who need a bit of security at the moment, Martin highlighted where the best fixed rates could be found.
As Martin alluded to, the possibility of negative interest rates has worried savers for a while now.
The Bank of England has kept the base rate at 0.1 percent, forcing retail banks to keep interest rates low.
As the base rates cannot be lowered much more, fears have emerged that it could be moved into negative territory, with huge ramifications for savings accounts, mortgages, pensions, and a range of financial assets.
While the Bank of England has stressed it is are not looking to introduce negative rates any time soon, it has hinted at its potential usage in the future.
In September Andre Bailey, the Governor of the Bank of England discussed the options available with the Treasury Select Committee.
On negative rates, he detailed the following: “It’s in the box of tools – we’re not planning it at the moment.
“We’ve got no plans to use it imminently, but it is in the box.
“If it was the right thing to do, then the case for bringing it out of the box would be strong.”