Financial guru Martin Lewis is urging British savers to take immediate action to secure better returns on their money, revealing how households can access savings rates above 4.5% following the Bank of England's latest decision.
Bank of England Holds Firm on Rates
The Bank of England recently maintained the base interest rate at 4 per cent, providing some stability for savers concerned about potential reductions. The decision, made during the Monetary Policy Committee meeting ending on 17 September 2025, saw committee members vote by a majority of 7-2 to keep rates unchanged.
Two members of the committee advocated for reducing the Bank Rate by 0.25 percentage points to 3.75%, but were outvoted. The committee also agreed to reduce the stock of UK government bond purchases by £70 billion over the next year, bringing the total to £488 billion.
Martin Lewis's Savings Strategy
Speaking on his popular podcast, the BBC and ITV financial expert delivered a clear message to savers: "If you're earning less than 4% in your savings, you can do better! This pod shows you how to maximise every penny both simple ways and more complex too if you're spend more time."
Lewis highlighted several current accounts offering superior returns, stating: "The top payers at the moment, two pay 4.5%. So that's what you want to be looking at. If you're earning less with easy access, get your money out of there and put it into one of these."
Top Savings Options Revealed
The money saving expert specifically recommended three institutions offering competitive rates:
Ulster Bank, part of NatWest, offers 4.5% interest but requires a minimum deposit of £5,000. Lewis noted that while the rate will drop after a year, savers can benefit from a decent return in the short term.
Chase, backed by JP Morgan, also provides 4.5% on savings with a minimal £1 deposit requirement. This account includes a 2.25% bonus, making it an attractive option for those with smaller amounts to save.
For those seeking simplicity, Hodge Bank offers 4.2% with no minimum deposit requirements and allows withdrawals at any time without restrictions, accepting up to £250,000 in deposits.
Economic Context and Expert Views
Bank of England governor Andrew Bailey commented on the rate decision: "We held interest rates at 4% today. Although we expect inflation to return to our 2% target, we're not out of the woods yet so any future cuts will need to be made gradually and carefully."
However, not all experts agree with the Bank's approach. Scott Gallacher, Director at Leicester-based Rowley Turton, expressed concerns: "The danger is that the medicine ends up killing the patient. The modern economic playbook says you raise interest rates to tame inflation, but that's a blunt tool that overlooks the real causes of UK inflation — energy, food, and supply shocks, not runaway domestic spending."
Gallacher added: "That makes today's decision to hold rates, when the economy is flatlining and businesses need a boost, feel somewhat perverse. At some point, the Bank has to accept you can't cure imported inflation by strangling growth at home. Right now, it's hard to be optimistic about UK plc."
With savings rates potentially offering better returns than many households currently receive, Lewis's advice comes at a crucial time for Britons looking to make their money work harder amid ongoing economic uncertainty.
