In 2022, the best savings accounts will be those that pay the highest interest – savers can earn more than 2%.
SAVINGS ACCOUNTS WITH THE HIGHEST INTEREST RATES ARE ADVISED TO MOVE MONEY TO THESE ACCOUNTS IN ORDER TO MAKE THEIR MONEY WORK HARDER FOR THEM.
Savers should be hopeful that interest rates will rise as the Bank of England increased the base rate from a record low of 0.1 percent to 0.25 percent in late 2021, so it’s best to shop around for the best deals.
Personal finance expert Andy Webb discussed the best savings accounts in the UK for 2022 on the Andy Clever Cash YouTube channel to help savers understand the various options available.
The Virgin Money M Plus Current Account is an easy-access account that “pays the highest interest” on cash.
The rate available is 2.02 percent, and people can only earn interest on the first £1,000 they deposit into the account.
“Compared to everything else,” Andy said, “that’s the best you’re going to get.”
Inflation is currently at 5.1 percent, which is expected to continue throughout the year, implying that there is a significant difference between the interest rate offered and the rate of inflation. However, the personal finance expert advises that “getting the highest rate you can” is still worthwhile.
Mr Webb explained that because Virgin Money’s 2.02 percent offer is a current account, people will most likely have to undergo a credit check before they can open one.
“Maybe stay clear if you have a big credit application coming up this year, like a mortgage,” he advised, “but if not, there’s no harm.”
People with £1,000 or a lump sum can deposit it in the account and earn £20.20 in interest by the year’s end.
“It’s not a huge sum of money,” he said, “but it makes a difference.”
It’s worth getting because it’s a decent amount of money.”
People can have multiple accounts, which means they can keep applying and earning over 2% interest. However, this comes with the risk of being rejected if they have multiple accounts.
Virgin will also give new customers the choice of receiving £150 in free Virgin Experience Days vouchers to use at any time in 2022 or 12 free bottles of award-winning wine.
“This is what it is.
“Brinkwire News Summary.”