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Martin Lewis tells pensioner what to do with savings

Responding to a question from a viewer, Money Saving Expert founder Martin Lewis said doing nothing with savings right now is “a financial sin”. He explained how the 75-year-old pensioner could get the most out of her money.

He continued: “If you could look at investing any of it you would need to go to an Independent Financial Advisor to see what’s right as I don’t know the rest of your financial circumstances.

“But as a bare minimum get it into one of the top paying savings accounts asap and if you’re not planning to use it then go for a one or two year fixed.

“They’re paying over four percent and that’s a lot more interest – you’re talking over £6,000 a year interest on the money that you’ve got.

Even if you don’t do that, get it somewhere with easy access paying 2.75 percent and then you can take the money out whenever you need. But leaving it sitting in your bank earning nothing is frankly a financial sin.”

READ MORE: Aldermore offers 4.60% interest despite ongoing economic uncertainty

Barclays customers can get 5.12 percent interest on their savings and access their money when they need it but this interest rate drops after £5,000. 

Someone who saved £1,000 into the account would see the balance grow to £1,051.16 after 12 months.

If a saver invested £5,000 in their Rainy Day Saver, the amount would grow to £5,250.17 after a year.

Customers get more rewards if they have additional accounts or services with the bank.

This Morning airs weekdays from 10am on ITV.

Martin Lewis is the Founder and Chair of MoneySavingExpert.com. To join the 13 million people who get his free Money Tips weekly email, go to www.moneysavingexpert.com/latesttip.



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