While record high inflation has put a dampener on Britons’ finances, banks have been passing on interest rate rises to savers. MoneySavingExpert founder Martin Lewis has called for anyone getting less than 2.85 percent interest to “ditch and switch” and the good news is digital bank Zopa is currently offering this savings rate and people only need £1 to open an account.
Customers who pay in the maximum £3,600 over the 12 months will receive £136.50 in interest at the end of the fixed rate period.
Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, said: “At the moment, you can make up to three percent on your savings if you’re prepared to accept restrictions, and we can expect accounts to start offering the same rate with more flexibility as we get towards the end of the year.
“The high street banks increased rates on their branch-based easy access accounts very fractionally at the start of the month, and they may do again.
“However, they’re still likely to be offering a fraction of one percent, so if you’re tied to them by loyalty or inertia, this will cost you dear.”