Finance guru Martin Lewis has warned customers they are at risk of being ripped off and urged them to "sort it now". He warned anyone with a savings account to act now rather than "riding the market".
Speaking on ITV's Money Show Live, the money saving expert also gave viewers tips on how a £1 trick with certain bank accounts could give them access to thousands to boost their savings. The latest episode of the consumer programme was devoted to savings advice.
Warning viewers with a savings account to "act now", he said: "Forget riding the market. Take the fire and the passion you've got hopefully from listening to me right now tell you that you are being ripped off and just go and sort it now."
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In giving advice on how people can boost their savings, he had a specific trick for those with a HSBC account to get a better rate. He said: "HSBC's online bonus saver pays 3% and up to £10,000.
"Here's a trick, the terms say you can get this account whether you've got a current account or a saving's account. Well it's flex savings account allows you to open it with £1. So you can put £1 in HSBC's flex saving account, which has a very poor rate and that will give you access to this account what pays 3% and you can put up to £10,000 in.
He also had advice for mortgages. As mortgage rates have been rising, Lewis has said banks should be putting up the amount of interest savings can accrue too. "Let's stop the savings rip-off," he told viewers.
"UK base rates have been rising since December and are likely to rise again this Thursday. But while variable mortgage rates have shot up in the blink of an eye, we've yet to see most savings rates rise at all."
He said the minimum rate of interest savers should be earning is 2%, and recommended several accounts that offer such rates, including products from Marcus, Saga, Yorkshire Building Society, Barclays and HSBC. However, Lewis said there is a "big downer" attached to saving money.
"All savings in reality are losings," he said. "Which means even in the top paying fixed accounts your savings are not growing as quickly as prices are rising.
"So your purchasing power of money kept in savings is diminishing even in the maximum interest. Now, you might be thinking - what's the point of bothering?
"The honest answer is you could look at investing. But the higher your savings earn the more you mitigate the damage of inflation.
"We cannot prevent it, but we can mitigate it. So it's probably more important now than ever that you get the top rate."
He then issued a special plea to one group of viewers in particular. "If you're an inactive saver, if you're sitting with your savings in a pants account right now that you've not done anything about for a year or two, that's earning you 0.2%, forget riding the market," he said.
"Take the fire and the passion you've got hopefully from listening to me right now telling you 'You are being ripped off' and just go and sort it now. Do it while you've got that drive to get the best interest you possibly can."
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