Brits with at least £500 in the bank urged to take action with their money now
Millions are being encouraged to switch their bank accounts as finance gurus highlight the missed opportunities for free cash due to low-interest savings accounts. UK households are advised to make the move swiftly before the Bank of England interest rate reduction.
Even those with a modest £500 could notice a significant benefit from moving to one of the leading accounts. The more savings individuals have, the greater the gains they'll see through accrued interest. Recent studies indicate that the best 50 easy-access accounts yield an average of 4.23% interest.
This is in stark contrast to many major banks which offer a paltry 1.17%. Financial experts are dismissing these accounts as unworthy due to their negligible returns. In other similar news, a state pension warning for millions of Brits who are between two specific ages.
A person with just £500 would earn £21 in the higher-yielding accounts versus a mere £6. For someone with £10,000, the difference is even more pronounced: £423 in interest compared to only £117 in a typical low-interest account - that's such a big difference!
With the latest Bank of England interest rate cut on the horizon, households are urged to capitalise on these advantageous accounts promptly, reports Birmingham Live.
Alastair Douglas, CEO of TotallyMoney, commented: "The Bank of England is expected to continue cutting rates over the next 12 months in a bid to boost the economy – so it's important that savers act quickly, and make sure their money is working for them. Some banks are paying below 1% interest, and with inflation at 4.10%, for some people, their cash will effectively be losing value."
He added: "When shopping around, keep an open mind, and consider smaller or newer banks and building societies. They'll often offer some of the best rates in a bid to try and win customers from the big high street providers. Loyalty doesn't pay, but being savvy with your savings can."
Andrew Hagger, personal finance expert of Moneycomms.co.uk, commented: "Your average saver simply wants a decent rate of return on their money without having to worry about the impact of confusing terms and conditions. Their priority is to be able to get their hands on their cash whenever they need it."
So, if you're looking to expand your savings and earn some extra free cash - don't think twice and move your money to accounts with higher rates. Every little helps, right?
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