Martin Lewis issues 'urgent' warning for people to 'lock away' savings now
Martin Lewis issues has issued an "urgent" warning for people to "lock away" their savings now
The MoneySavingExpert.com founder returned to X, formerly Twitter, this week after taking time off from the platform. On his return, he shared some major financial advice with his followers.
He told followers they can now "lock away" their money with "total safety" as National Savings & Investments (NS&I) has launched a 6.2% one-year best buy fix savings bond which "beats every other fix on the market - of any length".
However, Martin warned this offer "likely won't last long" so savers would need to be on it to get it. To those who are unsure, he also linked to the recent MSE newsletter which explained more about the pros and cons of savings with NS&I.
In his tweet, he said: "Urgent savings update. Lock away money in total safety as National Savings launches a 6.2% 1yr best-buy (better than any other fix of any length) - though it likely won't last long. Full info, alternatives pros & cons..."
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NS&I is a Treasury-backed savings institute and unlike normal savings accounts, where up to £85,000 is protected, NS&I products protect every single penny. The MSE team says that NS&I accounts and bonds are as "safe as it gets".
The MSE newsletter did warn readers that their money will be locked away for the entire year if they open the bond. The MSE team also noted that savings in this bond were taxable, which means those who are "saving a lot" may want to opt for a Cash ISA instead as you don't need to pay any tax on the interest earned.
The minimum balance is £500, and the maximum is £1million per person. The MSE team says it could be good for "bigger savers" such as someone who has sold their house and knows they won't buy within the year. This is because to get the "highest rate totally protected up to £1million for a year is normally unthinkable".
There are two versions of the account, both pay the same rate, the only difference is when you get the interest, you can either go for a Guaranteed Growth Bond which pays interest at maturity or a Guaranteed Income Bond which pays interest monthly.
Again, the MSE team warns that this offer may not be available for long as NS&I don't work like other banks and building societies. This is because it has rules that mean it can't overly distort competition, so you "wouldn't expect it to be at the top of the tables for a long time.".
The MSE team add: "Though NS&I is currently tasked with raising £7.5billion for the Treasury this tax year - a relatively high figure. But if these accounts prove popular (and them being in this email will help that) then they may not be around long. So sooner is surer."
You can open an NS&I account on the NS&I website or over the phone on 08085 007 007. The call centre is open Monday to Sunday, from 7am to 10pm. All calls from the UK are also free.
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