Martin Lewis is urging Britons to “ditch” their previous money ISAs to be able to safe higher interest rates on savings accounts. This comes following a sequence of recent rate hikes from the Bank of England in an try to deal with the UK’s excessive inflation charge.

As a consequence of this, this rate of interest rise has been handed on by banks and constructing societies to their financial savings accounts. Savers have benefited from the central financial institution’s decision-making with charges reaching as excessive as 5.7 p.c.

The Money Saving Expert is pushing individuals to benefit from these greater charges and shared recommendation for these with £8,000 in financial savings or extra.

On The Martin Lewis Podcast, the finance skilled known as on anybody who opened a Cash ISA over six months to “ditch it”, citing the dearth of aggressive rates of interest.

He defined: “It’s time for millions to reopen cash ISAs. The top pay 5.7 percent, 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.”

The personal finance expert gave suggestions for among the accounts presently on provide.

These embrace simple financial savings accounts from Chip which is paying savers a 4.15 p.c charge and Leeds Building Society which is providing 4.2 p.c.

Mr Lewis added: “If you are paying tax though, that Chip pays 4.5 percent but if you were paying 20 per cent tax on Chip, then after 20 percent tax your equivalent rate is 3.16 per cent.

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

According to the savings expert, people who are looking to leave their current cash ISAs will have to pay a penalty.

However, Martin Lewis suggests that this is a price worth paying in order to secure a better interest rate.

The Martin Lewis Money Show host said: “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.”

Martin Lewis is the Founder and Chair of MoneySavingExpert.com. To be a part of the 13 million individuals who get his free Money Tips weekly e mail, go to www.moneysavingexpert.com/latesttip