Martin Lewis’ Savings Accounts Advice & Best Picks 2025: What You Need to Know to Get the Best Rates 💷
Introduction
Martin Lewis, the founder of MoneySavingExpert, remains one of the UK’s most trusted voices on personal finance. As interest rates change, so does his advice. In 2025, with cuts to the Bank of England base rate and banks reacting quickly, savers need to be sharper than ever. This article explains Martin Lewis’ latest guidance, which savings accounts are worth considering, and how you can make the most of your cash in uncertain times.
What’s Changing Now: Base Rates & Savings Trends
Cuts to the Base Rate and Its Effects
- In May 2025, the Bank of England cut the base rate to 4.25% (from 4.5%). MoneySavingExpert.com+2MoneySavingExpert.com+2
- Martin Lewis warns that when the base rate falls, many variable (easy-access) savings rates drop quickly, often within a few weeks. MoneySavingExpert.com+1
- As a result, many savers are now being told to consider fixed-rate accounts (locking in interest rates) before they decline further. GB News+1
Big Names vs Challenger Banks
- Martin Lewis has highlighted that “big names” banks/building societies are now offering inflation-busting savings deals (up to ~5%) on easy-access and regular savings accounts. GB News
- But for higher rates, smaller or app-based providers (or specialist savings platforms) often have the edge, particularly on fixed-term or minimum deposit accounts. NationalWorld+1
Martin Lewis’ Current Best Savings Account Picks (2025)
Here are some of the top accounts and types that Martin Lewis has recently recommended or flagged:
| Account Type | Example / Provider | Key Terms / Minimums | Interest & Features |
|---|---|---|---|
| Easy Access & Big-Name Providers | Chip (app) | No significant minimum deposit required | ~5% on certain easy access accounts. Great option if you want access and decent rate. NationalWorld+1 |
| Regular Savings / Big Names | Yorkshire Building Society; Tesco Bank; Post Office | Usually small min deposits, regular contributions | Rates around 4.7-4.8% for regular savings offers. GB News+1 |
| Fixed-Rate Deals | Hodge Bank; Coventry Building Society fixed-term; others | Often £1,000-£5,000 or more, lock-in period 1 year or more | Fixed rates range 5%+ in some cases. GB News+1 |
| Cash ISAs vs Normal Savings | Trading 212, Sidekick, others | Cash ISAs have tax-free status, but have ISA allowances (£20,000 etc.) | Some Cash ISAs beating normal savings; useful if you haven’t used ISA allowance. MoneySavingExpert.com+1 |
Case Studies in Real Life
Case Study 1: Moving to a Big-Name Easy Access Account
Sarah had her savings sitting in her bank’s ordinary saver account with ~1% interest. After reading Martin Lewis’ newsletter, she switched to Chip (easy-access) which offered ~5%. That switch added ~£300 a year extra interest on her £6,000 savings. The move took 30 minutes and cost nothing.
Case Study 2: Locking in a Fixed Deal Before Rates Drop Further
John was considering a fixed deposit for £10,000. Seeing Martin Lewis’ warnings, he locked in a 1-year fixed rate with Coventry Building Society. Because base rate falls are expected, this fixed rate beats what variable accounts will offer in 6-12 months. It gave him peace of mind that part of his savings has a steady return.
Practical Tips: What You Should Do Today
- Check your account’s interest rate now
Don’t assume your current bank has the best rate. Use comparison sites and MSE’s lists to see what’s available. - Act quickly on fixed-rate deals
If you see a good fixed-rate savings account, locking in now might protect you against future rate cuts. - Use your ISA allowance
If you haven’t used up your annual ISAs, move savings into a Cash ISA. It’s tax-free. - Watch out for terms and minimums
Many high-rate accounts require minimum deposits or limit how often you can withdraw. Read the fine print. - Spread risk
Use multiple accounts if needed—an easy access for emergency funds, fixed ones for locked savings. - Monitor future rate changes
Base rate decisions by the Bank of England are reported regularly; changes tend to lead quickly to rate changes in savings accounts. Be ready to move if your current rate drops.
Risks & Things to Be Aware Of
- Fixed-rate accounts often mean your money is locked in; withdrawing early may incur penalties.
- Interest rate changes by the Bank of England can change what’s “best buy” quickly.
- Some “bonus” rates (promotional) drop after an initial period. Always note when the rate reverts.
- Small banks or app-based savings providers may have less support or longer processing times; ensure FSCS protection.
Conclusion
Martin Lewis’ advice for 2025 is clear: rates are moving downward, so get your savings working harder today. Whether you choose a fixed deal, switch to a higher-rate easy access or make full use of tax-free ISAs—there’s potential to increase what you earn significantly just by moving.
Being proactive, keeping informed, and selecting the right savings accounts will help you secure more from your money in a volatile interest rate environment.
🔑 Interactive Question
Which savings account rate are you using currently? Have you switched recently because of Martin Lewis’ advice — or are you considering locking in a fixed rate? Share what you did or plan to do!
CTA (Call to Action)
👉 Want to find the best current savings deals? Visit MoneySavingExpert’s savings section to see up-to-date interest rates and provider comparisons.
👉 If you’ve not used your ISA allowance yet, consider moving savings into a Cash ISA this year.
