Martin Lewis gives 'devastating' warning to millions of people with savings accounts

23 September 2020, 10:24 | Updated: 23 September 2020, 10:39

The Money Saving Expert has Tweeted savers new details about falling interest.

Martin Lewis has revealed details about a sharp drop in interest across savings accounts coming in November.

The National Savings & Investments (NS&I) recently announced the cuts, meaning Brits will earn less money on their savings accounts, Bonds, Direct Saver and Premium Bonds.

Tweeting about the changes, the Money Saving Expert warned account holders: "NEWS: NS&I announces unprecedentedly large rate cuts on 24 Nov. Currently best buy across the board.

"Income Bonds drop from 1.15% to 0.01%

"Direct Saver drop from 1% to 0.15%

"Investment account from 0.8 % to 0.01 ISA & Junior ISA similar."

He then added this is 'a devastating blow for savers.'

And the 48-year-old’s followers were quick to agree, as a lot of people turned to NS&I after savings rates dramatically fell during the coronavirus pandemic.

One commented: “I’m gutted. I have just setup a direct saver and junior isa. And they are not easy accounts to setup.”

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“Genuinely struggling to find a reason to have savings accounts at the moment,” said another, while a third added: “Blimey. So where’s the best savings option now Martin?”

This comes after Martin opened up about the ‘dire year’ for savers, during an interview on This Morning last month.

He explained to hosts Ruth Langsford and Eamonn Holmes: "Sadly, it's another dire year for savers.

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"Following the Bank of England base rate cut a few months ago to 0.1% - the lowest in 325 year history – and as it wants people to spend more to spur on the economy, savings rates have continuously plummeted, and things don’t look set to improve.

"Yet also many people leave their savings with their own bank, or just sitting in old accounts; if that’s you, you’ll almost certainly earn nowt.

"To get a half-decent return you need to become an active, disloyal, aggressive saver, shifting from best rate to best rate. So, check what your savings pay.

"Anything earning less than the top 1.16% easy-access rate needs moving. Don't dally - every day is lost interest."

Meanwhile, Ian Ackerley, NS&I Chief Executive, recently explained the decision behind the rate cut, saying it’s down to ‘successive reductions in the Bank of England base rate’.

He said: “Reducing interest rates is always a difficult decision. In April we cancelled interest rate reductions announced in February and scheduled for 1 May.

"Given successive reductions in the Bank of England base rate in March, and subsequent reductions in interest rates by other providers, several of our products have become ‘best buy’ and we have experienced extremely high demand as a consequence.

"It is important that we strike a balance between the interests of savers, taxpayers and the broader financial services sector; and it is time for NS&I to return to a more normal competitive position for our products."

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