Martin Lewis Warning to Anyone With More Than £10,000 in Savings Accounts

Martin Lewis’ Important Warning

UK financial expert Martin Lewis has issued a strong warning to anyone holding more than £10,000 in savings accounts. Many high street banks are still paying very low interest—sometimes as little as 0.1%. This means savers are missing out on hundreds of pounds every year, especially during times of high inflation.

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Lewis explained:

> “If you’ve got a large amount of savings in a poor-paying account, you’re effectively letting the bank profit from your money while you lose out.”

Why You Shouldn’t Ignore This Warning

Low returns: £10,000 in a 0.1% savings account earns just £10 a year.

Better options available: The top easy-access accounts are currently offering 4%–6%. That’s £400–£600 a year for the same £10,000.

Inflation risk: If inflation is higher than your savings rate, your money is losing real value.

What Savers Should Do Now

1. Check Your Current Savings Rate

Don’t assume your bank is paying you a good deal. Log in and check the exact rate—many long-standing accounts still pay next to nothing.

2. Compare the Best Savings Accounts

Switching to a high-interest account could earn you 40–60 times more interest. Use comparison sites to find the best deals.

3. Decide Between Easy Access and Fixed Rate

Easy Access Accounts – good if you need flexibility.

Fixed-Term Accounts – lock your money for 1–3 years but usually pay higher interest.

4. Consider ISAs for Tax-Free Savings

If your interest earnings exceed the Personal Savings Allowance, an ISA can protect your money from tax.

Example: £10,000 in Savings

Old account (0.1%) = £10 per year

New high-interest account (5%) = £500 per year

👉 That’s an extra £490 simply by switching.

Frequently Asked Questions (FAQs)

1. What did Martin Lewis say about savings accounts?

He warned that leaving large sums in poor-paying accounts is a waste of money and urged savers to switch to higher-paying options.

2. How much interest can I earn on £10,000?

With a top account paying 5%, you could earn around £500 a year compared to just £10 in some standard accounts.

3. Are ISAs better than normal savings accounts?

Yes, if you’re a UK saver earning interest above your Personal Savings Allowance, ISAs let you save tax-free.

4. Should I choose fixed or easy access?

It depends. If you need flexibility, go for easy access. If you can lock away your money, fixed-rate accounts usually pay more.