Martin Lewis says Brits can save hundreds by making banking change

Martin Lewis has given vital advice again – and this time it's for people who have a lot of savings.

The money guru has warned anyone with more than £8,000 in savings to ensure they're making the most of the money as interest rates are changing.

Martin, who is also known as the Money Saving Expert, revealed what you need to do to bag hundreds by making very little effort.

READ MORE: Martin Lewis issues passport warning for Brits heading to Europe this summer

He recently explained that savings accounts and ISAs have had a bit of a boost thanks to the Bank of England interest rate hikes.

Due to these changes he said people need to check the accounts they're using to ensure you have the best interest possible.

And – if you can find better – he advises you switch to make the most of your money.

If you have at least £8,000 in savings he's given his top tips on what are the best things to do amid the changes.

Speaking on the latest episode of The Martin Lewis Podcast on BBC Sounds, Martin said: "It’s time for millions to reopen cash ISAs.

"The top pay 5.7%, and with rates rising, anyone with £8,000 in savings, check now if your money’s in a cash ISA.

"Cash ISAs usually pay slightly less than the equivalent normal savings, so it’s only for those people who would pay tax.

"So it’s roughly over £8,000 for a lower rate taxpayer and £16,000 for a higher rate taxpayer, over those amounts are when you want to start looking at it."

He then explained what the best options are for people at the moment, and said it would be a good idea for tax payers to consider ISA options.

"On easy access savings, Chip pays 4.51%. The top Cash ISA Leeds Building Society and Principality pays 4.2% so normal savings are beating cash ISAs," he added.

"If you are paying tax though, that Chip pays 4.5% but if you were paying 20% tax on Chip, then after 20% tax your equivalent rate is 3.16%.

"If you were paying 40% tax, your equivalent rate is 2.7%, way lower than you would get in a cash ISA."

The expert also encouraged people to check what their saving accounts are actually offering, as it may be better for people to look around and switch.

If you can get a better deal then it's a good idea to move your cash.

Martin said: "Some people who are locked into a cash ISA should be ditching it and paying the penalties.

"As a general rule of thumb, if you got a Cash ISA more than six months ago, you’re probably better to get out of it.

"If you locked in more than six months ago your rates would have been terrible.

"You will have to pay a penalty to get out but generally you will earn more in the new ISA than the interest penalty will cost you because an interest penalty where the interest isn’t very high isn’t that much."

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