24 saving rates cut, 47 banks withdraw accounts

Monday, 17 November 2008 12:00

A total of 24 banks and building societies have cut their savings account interest rates after the Bank of England's interest rate cut.

Furthermore 47 savings providers have withdrawn accounts.

Some 14 of the 24 rate cuts have matched the Bank of England's 1.50 per cent cut in the base rate.

Rate cuts recorded so far include a 1.5 per cent cut from the Lloyds TSB's Easy Saver 2012 and up to two per cent off term deposits.

Capital One Savings has cut its Base Beater savings account by up to two per cent, as has Norwich & Peterborough on its Gold Savings and Family Regular Savings.

Anglo Irish Bank has reduced fixed-rate bonds by up to 2.40 per cent and Irish Nationwide has cut personal variable rates by up to 1.65 per cent.

Louise Bond, personal finance manager at uSwitch.com, said: "Providers have once again demonstrated their willingness to act fast and cut rates when it serves their purpose.

"An alarming 19 providers withdrew some of their products from the market on Friday, immediately closing themselves to new business, and seemingly in an attempt to steer the focus away from future product launches with significantly less competitive rates."

She added the wave of changes highlighted the need for consumers to keep a close eye on their savings accounts.

"Many who signed up to best buy saving rates over the last few months could now find that they have one of the most uncompetitive deals on the market," Ms Bond said.

"For those consumers still looking to make the most of their savings some of the high variable rate accounts may look appealing, but with further base rate cuts predicted these rates certainly won't stay around for long.

"Plenty of fixed rate deals have been withdrawn from the market, but for any savers who can afford to lock their cash away for a year or more, the remaining few products are currently the best options."

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