Martin Lewis says you should check your savings account as soon as possible

Money saving expert Martin Lewis has warned anyone with money in a savings account to “check it now” as they could be underpaid.

The finance guru is helping people to get the most value for their savings in his latest newsletter as he tells his readers “don’t stand for it” if they find they are being underpaid.

Top savings interest rates have now jumped to their highest levels since July 2019, according to the money saving expert.

He said: “If you’ve not switched savings account in the last couple of years, you’re likely earning just 0.1% or less. Do check now.

“Even if you opened a decent account a few months ago, as rates have increased, you’re still likely earning little more than half of what today’s top accounts pay.”

Mr Lewis said the mimimum savings should pay is 1.5 per cent, as that is what you get in the top easy-access account.

A top easy-access account is a standard savings account where you can add and withdraw money whenever you want.

He points out that an estimated £180 billion was put aside by UK households during the pandemic due to lower costs when working from home.

But “rock-bottom” interest rates means those savings were not rewarded as they could have been.

Now, more people are having to dip into those savings thanks to the rising cost of living.

Mr Lewis has put together a list of options that give people a better deal on interest rates to help people get more from their savings.

The list includes companies that offer 1.2 per cent, 1.5 per cent and 2.3 per cent if you can afford to put cash away for a fixed term.

But the financial journalist added that despite the increase in savings rates, “the true picture is still gloomy”.

He explained that inflation being at its highest rate in 30 years means that interest from even top-paying savings is “easy gobbled up by price rises”.

He said: “That means upping savings interest is even more important though, as it’s not about helping ‘em grow, it’s about reducing the rapid erosion of inflation”.

Martin Lewis warns the savings picture is grim as living costs continue to rise

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