{"id":310635,"date":"2025-08-02T00:56:17","date_gmt":"2025-08-02T00:56:17","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/310635\/"},"modified":"2025-08-02T00:56:17","modified_gmt":"2025-08-02T00:56:17","slug":"martin-lewis-reveals-why-these-accounts-are-unbeatable-despite-savers-feeling-conned","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/310635\/","title":{"rendered":"Martin Lewis reveals why these accounts are ‘unbeatable’ \u2014 despite savers feeling ‘conned’"},"content":{"rendered":"

\t\t\"Editorial
\n\t\tIt\u2019s a common misunderstanding (Picture: Ken McKay\/ITV\/REX\/Shutterstock)<\/p>\n

Unless you\u2019re paying off expensive debt<\/a>, it\u2019s always a good idea to put a portion of your monthly income into a high-interest regular saver account.<\/p>\n

However, even if you\u2019ve compared the options<\/a> to find the one with the best rate, you may end up earning less<\/a> interest than expected \u2014\u00a0and Martin Lewis has just revealed why.<\/p>\n

Ahead of predicted cuts to the UK base rate<\/a>, the Money Saving Expert (MSE) founder shared advice on savings<\/a> in the latest edition of his newsletter, with a run-down on why your annual return can seem like \u2018less than it is\u2019.<\/p>\n

\u2018At the end of the year, many feel they\u2019re being conned when they see the interest,\u2019 he wrote, using an example of someone depositing \u00a3300 a month at 7% interest to demonstrate the issue.<\/p>\n

Over the course of 12 months, this adds up to \u00a33,600. And since 7% of \u00a33,600 is \u00a3252, you might assume that\u2019s what you\u2019ll receive on top of your nest egg.<\/p>\n

But the actual amount would be more like \u00a3139, because interest is typically accrued on your balance at the end of each day, regardless of how often it\u2019s paid out.<\/p>\n

\t\t\"Hand
\n\t\tMartin\u2019s advice comes ahead of a predicted cut to the Bank of England base rate (Picture: Getty Images\/iStockphoto)<\/p>\n

\u2018You\u2019ve not had \u00a33,600 in for a year; you\u2019ve been dripping it in each month.\u2019 Martin explained. \u2018In fact, your average balance over the year is roughly half that \u2013 \u00a31,800 \u2013 so the interest will be closer to 7% of that.\u2019<\/p>\n

While this may make regular savings seem less attractive though, the financial guru urged people not to be put off, adding: \u2018Even though you only save in increments, the higher rates mean you are still getting unbeatable interest on the money in the account. If that\u2019s new money from your regular income, you can\u2019t beat it.\u2019<\/p>\n

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The caveat? Whether you\u2019ve already got a big lump sum or are just starting out on your savings journey, getting to grips with how interest works is vital to ensure you make your money go further<\/a>.<\/p>\n

According to Hargreaves Lansdown, 27% of people don\u2019t know what interest rate they\u2019re getting on their savings, with a Building Societies Association (BSA) survey<\/a> finding 34% of UK savers never compare their rate to others available in the market.<\/p>\n

To help you along, MSE lists the top-paying regular savings accounts<\/a> and offers guidance around which options are best for your needs. Bank of England\u2019s savings calculator<\/a> can also give you a clearer idea of how much your pot will grow in time.<\/p>\n

Looking to make the most of your savings?<\/p>\n

As part of his savings \u2018masterclass\u2019 newsletter focus, Martin had an array of additional advice for readers, from using up your tax-free ISA allowance<\/a> to taking advantage of multiple accounts with different providers (all of whom offer different benefits).<\/p>\n

\t\t\"Young
\n\t\tRegularly reviewing your rate is key (Picture: Getty Images)<\/p>\n

If you want to \u2018maximise every penny\u2019 but aren\u2019t sure where to start, Martin\u2019s analogy of a \u2018savings \u201cchampagne\u201d fountain\u2019 \u2013 where you \u2018pour your cash into the best possible product, then when it\u2019s full, move to the next one down\u2019 \u2013 makes it easy.<\/p>\n

First off, there\u2019s Help to Save<\/strong>. This government-backed scheme<\/a> is open to anyone on Universal Credit\u00a0who also does paid work, allowing you to put away up to \u00a350 a month and withdraw your money at any time. Then, after two years, you get a tax-free bonus of 50% on the most you had saved\u00a0at any point.<\/p>\n

Next up, the Lifetime ISA (LISA)<\/strong>. If you\u2019re aged between 18 and 39<\/a>, you can open one of these accounts<\/a>, putting away up to \u00a34,000 a year tax-free and receiving an extra \u00a31,000 to put towards your first house or retirement.<\/p>\n

Then, at the bottom of the champagne tower, regular savings accounts<\/strong>.<\/p>\n

Martin warned that millions are \u2018pants\u2019 rates currently, but can \u2018easily ditch, switch and gain\u2019. However, he recommends doing so before next Thursday, when analysts believe the Bank of England base rate could be cut<\/a> from 4.25% to 4%.<\/p>\n

\u2018UK interest rates are likely on the move,\u2019 he added. \u2018And that means savers need to check what they earn now.\u2019<\/p>\n

Do you have a story to share?<\/strong><\/p>\n

Get in touch by emailing MetroLifestyleTeam@Metro.co.uk<\/a>.<\/strong><\/p>\n

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\nMORE: Martin Lewis reveals common savings mistake that leaves Brits feeling \u2018conned\u2019<\/a><\/p>\n

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\nMORE: The most valuable\u2028advice you should pass on to your children before the age of 10<\/a><\/p>\n

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\n\t\t\tComment now<\/p>\n

\t\t\tDo you feel confident managing your savings or do you find it confusing?
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