Martin Lewis explains two savings accounts you need to save money

Martin Lewis
-Credit: (Image: ITV)

Martin Lewis, the brains behind Money Saving Expert, has offered his insight on how Brits can maximize returns from their savings. In a recent exchange with a fan looking to strategise the distribution of funds for optimal interest earnings, Martin outlined the benefits of keeping both an easy access and a fixed savings account at the same time.

Starting from square one, Martin suggested that depending on their total savings, individuals should open two distinct types of accounts: an easy access account along with a fixed rate counterpart. He emphasized: "You should have easy access for the ones you need to get hold of...but also fixing."

Adding a caveat to the latter, he pointed out it's best for "money you can put away" as these often come with a no-withdrawal stance. On his BBC podcast The Martin Footnote Podcast, he explained that this kind of strategy pays off no matter which way the UK base rate swings.

While easy access accounts are variable and could fall if the UK base rates do, fixed accounts, as implied by their name, remain constant.

Moreover, Martin highlighted that there are no limits to the number of savings accounts one can have, urging savers to "put every penny where it can earn the most interest", reports the Mirror.

However, he did emphasise the importance of saving habits tailored to the individual. Explaining the practical approach to saving, he said: "If you're not on top of it, just putting it in one place where, when that ends, you'd be bothered to move it somewhere else is better than having a 'good idea' that 'I'm going to put it in five or six different accounts'."

"When it comes time to move them all, you can't be hassled and they drop to a pants rate so you're left with 6 pants accounts because you didn't bother to move it."

Martin Lewis also singled out a particular savings product for commendation, pointing out to Nationwide members that they should not miss out on an "unbeatable" 5.5% interest rate offered by the society's 18-month fixed-rate account - an offering exclusively available to those who were customers before 22 May. To open this account, investors need as little as £1, but can invest up to a maximum of £10,000.