Martin Lewis warns Brits as savings rates drop with interest cuts

Martin Lewis, the founder of Money Saving Expert, recently addressed the declining interest rates on savings accounts during his BBC Sounds podcast. He highlighted that while many have been focused on the dropping mortgage rates due to the Bank of England's actions, savings interest rates have also been falling. A few months prior, savings rates were at their peak, but currently, the highest rate available is around 5.13% from Oxbury Bank, which requires a 90-day notice for withdrawals. Lewis emphasized the volatility of savings rates, noting that they change frequently, and warned listeners about the risks of keeping their money in low-paying accounts. He discussed the choice between easy access savings, which may offer slightly higher rates but are expected to decrease soon, and fixed-rate savings, which are influenced by long-term predictions of future rate drops. This situation mirrors the current trends in mortgage rates, creating a complex decision-making process for savers.