MTTM Podcast Episode 474 – What is happening with savings rates, how to get more than 5% interest & the best savings challenges

Listen to Episode 474

As it's UK Savings Week this week's episode is a savings special. First, we discuss the outlook for UK savings rates and how time is running out if you want to secure a good return on your savings. We then reveal how you can still get 5% interest or more if you know where to look. Finally, we discuss fun savings challenges to help listeners start saving before explaining how you can now automate them.

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Podcast summary

• Savings rates and Fixed-Rate Bonds: We look at the outlook for savings rates in the UK, demonstrating how interest rates on fixed-rate savings bonds have changed since 2022, peaking in 2023, before declining. As the Bank of England reduces the base rate rate, savers should act quickly if they want to secure the highest interest rate possible on their money
• How to secure 5%+ interest on savings: Despite falling rates, we reveal the savings accounts that still offer over 5% interest.
• Savings challenges: This section revisits creative savings challenges like the 365 Money Challenge and introduces new ones, such as the Weather Wednesday Challenge and the 5p Challenge. We also explain how you can automate these challenges via apps like Plum and Monzo can make these challenges easier and more fun, especially when linked to daily events or habits.

Episode quiz

Test yourself on the topics covered in this week's show.

1. How does a fixed-rate bond work?
   • a) You can withdraw money any time without penalty
   • b) Your money is locked away for a set period at a fixed interest rate
   • c) Interest rates fluctuate based on the stock market
   • d) They are only available for junior accounts
2. In which year did the Bank of England first raise interest rates from 0.1%?
   • a) 2019
   • b) 2020
   • c) 2021
   • d) 2022
3. What automation service was mentioned for linking Monzo with savings challenges?
   • a) Zapier
   • b) IFTTT
   • c) Google Finance
   • d) Mint
4. How does the 52-Week Savings Challenge work?
   • a) You save £1 each day
   • b) You save £52 every week
   • c) You start with £1 in week one, increasing by £1 each week
   • d) You save £52 in the last week of the year only
5. What is one potential downside of the traditional 52-Week Challenge?
   • a) It requires you to save the most at the end of the year
   • b) You save too little in the first weeks
   • c) It’s only for high-income earners
   • d) You can only use cash

Answers

1. b) Your money is locked away for a set period at a fixed interest rate
2. c) 2021
3. b) IFTTT
4. c) You start with £1 in week one, increasing by £1 each week
5. a) It requires you to save the most at the end of the year

• Best savings accounts in the UK
• How to get more than 5% interest on your savings
• 11 money saving challenges to help make saving money fun
• Cash savings ladder explained
• MTTM Deals Page
• Sign up to the Money to the Masses Newsletter