Humor & Quirks
Sat, November 15, 2025
Martin Lewis Urges Savers to Withdraw Money From Low-Yield Banks Amid 30-Year High Inflation
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Published in Humor and Quirks on Saturday, November 15th 2025 at 16:26 GMT by Manchester Evening News- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Martin Lewis urges savers to “get your money out of the bank” amid a cost‑of‑living crisis
The Manchester Evening News (MEN) ran an article in late September 2023 that focused on the financial advice of British consumer champion Martin Lewis. The piece – titled “Martin Lewis says get your money out of the bank” – highlighted Lewis’s warning that the current high‑interest environment, combined with the UK’s spiralling cost of living, makes it more important than ever for ordinary people to review how they’re keeping their money safe and growing it.
1. The backdrop: a cost‑of‑living squeeze
The MEN article began by setting the scene. “The cost of living is at a 30‑year high, and many people are feeling the strain,” Lewis said in a quote that was reproduced verbatim. He referenced the Bank of England’s latest inflation data, which showed a headline CPI of 9.1 % – the highest in 32 years – and the corresponding rise in energy bills and food prices.
Lewis argued that the high inflation rate has not been matched by the interest paid on many of the most common savings products. “A lot of people are still putting their money in ‘basic’ savings accounts that give less than 1 %,” he added. “In a world where inflation is erasing real returns, you’re basically losing money on your savings.” The article pointed readers to the Bank of England’s “Money‑Market rates” page for current interest figures, a link that Lewis cited as a resource for checking whether a particular bank account is keeping pace with inflation.
2. “Get your money out of the bank” – the gist of the advice
Lewis’s headline directive – “Get your money out of the bank” – was explained as a call to move beyond the safety of the ‘old‑school’ savings account into higher‑yielding or more productive alternatives. The MEN piece detailed several options that Lewis recommends:
| Option | What it offers | Caveats |
|---|---|---|
| High‑interest savings accounts | Interest rates can now be 4 %‑plus on some products, far above the 0.1 % typically paid on standard accounts. | Rates can change; some accounts have transfer or withdrawal limits. |
| Cash ISAs | Similar high rates but with the added benefit of tax‑free growth. | Usually a 5‑year commitment; early withdrawal may trigger penalties. |
| Short‑term bonds or fixed‑rate CDs | Fixed returns over 6‑12 months, protecting against rate cuts. | Generally not liquid; you lose access to the money until the term ends. |
| Peer‑to‑peer lending platforms | Returns can exceed 6 % if you spread risk across many loans. | Higher risk of borrower default; platforms may have no regulatory oversight. |
| Government bond funds | Historically lower risk than corporate bonds, but returns hover around 2‑3 %. | Subject to market risk; not guaranteed. |
The article also mentioned that many people still keep their money in “basic” accounts that were once a safe haven during the 2008 financial crisis. Lewis points out that those accounts no longer protect against the erosion of purchasing power.
3. Paying off debt – a priority
Lewis was quick to stress that moving money to higher‑yielding accounts is just one side of the equation. “You should also be using your savings to get rid of high‑interest debt,” he said. The MEN article referenced a link to a MoneySavingExpert.com guide on prioritising debt repayment, which Lewis has promoted in his BBC Money Box programme.
In particular, Lewis highlighted credit‑card balances, which can carry rates above 20 %. He urged readers to pay off those balances as quickly as possible, noting that the interest accrued on a £1,000 balance at 20 % is roughly £167 per year – a cost that would be negligible if the money were simply left to sit in a low‑yield savings account.
4. Avoiding the “banking trap”
Lewis warned that the “banking trap” can be hard to escape when you’re chasing the next big rate bump. “Banks often advertise higher rates for a period, but then the rates drop, and you’re left with a lower return than you expected,” he said. The MEN article linked to an investigation by the Financial Times that shows how many banks have cut interest rates back to the 0.1 % range after a short spike.
He also advised checking whether the account has any “early‑withdrawal” penalties, as some “high‑interest” accounts only allow a single transfer or a capped number of monthly withdrawals. These restrictions can undermine the appeal of the higher rate if you need the money urgently.
5. Practical steps readers can take
To help readers act on Lewis’s advice, the MEN article broke down a simple three‑step plan:
- Audit your accounts – List all current savings products, note the interest rates, and compare them against the latest Bank of England rates (link provided).
- Set a target – Decide whether you want to maximise returns or preserve liquidity. If you have no high‑interest debt, you might prefer a high‑yield savings account or Cash ISA. If you have debt, use a part of your savings to make a minimum payment.
- Move your money – Use a comparison tool (the MEN linked to MoneySuperMarket.com’s savings comparison) to identify the best available product, then transfer the money, keeping in mind any transfer limits or penalties.
The article closed by emphasising that, while it can be tempting to “sit on the sofa” and let your money sit in a bank that pays a negligible return, doing so during a period of high inflation is effectively a guaranteed loss. Lewis’s advice, as reported by the MEN, encourages people to be proactive and look for better opportunities for their money to keep pace with – or even outpace – inflation.
6. Where to find more
The article linked to several additional resources that readers might find useful:
- The Bank of England’s “Money‑Market rates” page for real‑time interest rate data.
- MoneySavingExpert.com’s “Debt repayment” guide, which includes a free debt‑payoff calculator.
- BBC’s Money Box website, where Martin Lewis has posted a series of short videos explaining different saving products.
By summarising Lewis’s points and providing actionable next steps, the MEN article aimed to empower readers to take control of their finances in a challenging economic climate.
Read the Full Manchester Evening News Article at:
[ https://www.manchestereveningnews.co.uk/news/cost-of-living/martin-lewis-says-get-your-32879936 ]
