Inflation hit 5.4 percent in the year to December 2021, causing savings in the bank to lose value over time, but Britons are reminded about the importance of having easy access, emergency funds available to use in times of need. Even though interest is less than inflation, people should still be looking for the best rates they can possibly get for their cash.
“This has gotten slightly better for some customers as they have just launched a bank switching promotion.”
Bank switching is where people can move their existing current account into another current account, and they close the old current account as part of the switching process.
In return the new bank gives people a bit of cash or an incentive to join.
Mr Webb continued: “Usually Virgin Money give you some free wine but what they are offering a £100 Virgin experience voucher right now, plus a three percent fixed boost for 12 months on that first account.
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“This increases the interest you can get from 2.02 percent to 5.02 percent which cannot be beaten right now.
“This is a cracking rate for £1,000. Yes, you’re only going to make £50.20 over a year but at least it is close to inflation on the £1,000.
“If you’ve got some emergency money this is best possible rate you possible can so it’s definitely worth thinking about.”
Mr Webb explained that there are drawbacks to this account so Britons who are interested should do their own research.
“Whether you’re an existing or a new customer, you will get that increased rate – your money will earn more for the duration of that 12 months.”
With this account, people open it up and pay money into it over the 12 months.
After 12 months the account expires, and it ends, and the money is paid out to a separate account.
With this account people can only pay up to £200 each month.
It also only applies to those with a previous Nationwide account.
People can watch the full episode on Andy Clever Cash on Youtube.
