Lewis Warns of 'Free Money' Left Behind by Savers

For the third consecutive year, Martin Lewis is reminding Britain that millions of savers are leaving free money on the table. Despite the Bank of England's base rate fluctuations, Lewis' advice remains consistent: banks are paying too little on default accounts while headline rates on regular savers remain high.

In 2023, when the Bank was hiking its interest rates, Lewis warned that savers were earning less than 1% because they didn't want to switch. He repeated this message across various platforms, including his Money Saving Expert newsletter and ITV's Money Show.

As the base rate plateaued in late 2024, Lewis told savers that the top of the cycle had probably arrived. However, fixed rates began drifting down due to market expectations of future cuts, while easy-access accounts held up better because they track the current base rate.

Today, as of early September, Money Saving Expert's savings hub shows cash ISA best-buys ranging from 4.6% on easy access to nearly 4.9% on five-year fixes. Regular savers still offer high headline rates for those willing to drip-feed smaller sums each month.

The key takeaway is that Lewis' approach has been consistent throughout: check your tax status, determine how much you can lock away, and compare products accordingly, regular savers for monthly drip-feeding, easy-access for short notice needs, fixed-rate bonds for lump sums, and cash ISAs when tax shelter matters.

Notably, inertia remains a significant issue; banks rely on customers not switching, and the biggest high-street names are consistently among the worst payers. Switching can be a 'free lunch' worth hundreds of pounds per year, but most savers still don't take advantage of it.