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15 Dec 2019

News

Savers left out in the cold

So far, rates have been cut on just 22% of variable rate savings products, with most providers opting to pass on the full 1.50% cut or more.

If the remaining providers pass the cut on in full, then based on a £5K balance we could potentially end up with 12% of the market paying no interest whatsoever, 27% paying a rate of less than 1% and a staggering 52% paying a rate of 2% or less.

(See Appendix for details of which providers have cut rates and by how much.)

 

Michelle Slade, analyst at Moneyfacts.co.uk, comments:

“With mortgage lenders not passing the cut on in full, savers were hoping that they would get off lightly, but so far their optimism has been misplaced.

“At the start of the month, there was an abundance of accounts paying well over 6%. These are now disappearing fast and will no doubt be gone by early next week as more cuts are announced.

“It is now more important than ever that savers review the rate they are getting, as with over half the market possibly receiving a rate of 2% or less, they could be left seriously out of pocket.

“Rates of over 5% may still remain, but these will be few and far between. Some of the best rates on offer from those who have already cut rates, or launched accounts since the base rate cut include:

 

Institution

Account Name

£5K

ICICI Bank UK

HiSAVE Savings

5.50%

Anglo Irish Bank

7 Day Notice Issue 2

5.40%

Anglo Irish Bank

Easy Access Deposit Issue 2

5.25%

Northern Rock

E-Saver

5.15%

Whiteaway Laidlaw Bank

60 Day Bonus

5.06%

Source: Moneyfacts.co.uk 25.11.08

“With banks still remaining wary about lending to each other, their savings book will remain an important part of their strategy.

“They will not want to drive their savers into the arms of their competitors, so hopefully we may see other providers restricting the cuts they make.”

Appendix

Provider

Cut

Products affected

Marsden BS

by 0.50%

All except direct A/cs

ICICI

by 0.66%

All (only 1 account)

Manchester BS

by up to 1.00%

All

Anglo Irish Bank

by 1.15%

All

Earl Shilton BS

by up to 1.25%

All (Heritage increased by 0.25% but bonus reduced by 1.50%)

Norwich Union

by 1.35%

Only one tracker product

HSBC

by up to 1.49%

All

ASDA

by 1.50%

All (Only have 1 account)

Cater Allen Private Bank

by 1.50%

All (Only have 1 account)

FirstSave

by 1.50%

All (Only have 1 account)

Julian Hodge Bank

by 1.50%

All

Lloyds TSB

by 1.50%

Easy Saver 2012

Marks & Spencer Money

by 1.50%

ISA

National Savings & Investments

by 1.50%

Direct ISA only

Ruffler Bank

by 1.50%

All except ISA

The Co-operative Bank

by 1.50%

Tracker rates

United Trust Bank

by 1.50%

All

West Bromwich BS

by 1.50%

Tracker products

Post Office®

by 1.50%

All

Bradford & Bingley

by up to 1.50%

All

Butterfield Private Bank

by up to 1.50%

All (35 day a/c £50K tier increased by 0.50%)

Coutts & Co

by up to 1.50%

All (Only has 1 account)

Investec Bank (UK)

by up to 1.50%

Direct Reserve only (High 5 changes weekly)

Mansfield BS

by up to 1.50%

All (trackers already changed 7.11.08)

Northern Bank (NI)

by up to 1.50%

All

Saffron BS

by up to 1.50%

All

Sainsbury's Bank

by up to 1.50%

All

Tipton & Coseley BS

by up to 1.50%

All

Triodos Bank

by up to 1.50%

All

Whiteaway Laidlaw Bank

by up to 1.50%

Instant Access Savings/Others

Newbury BS

by up to 1.50%

All

First Direct

by up to 1.51%

All

Progressive BS

by up to 1.55%

All

Chelsea BS

by up to 1.65%

All

Ulster Bank (NI)

by up to 1.75%

All

National Counties BS

by up to 1.80%

All

Wesleyan Savings Bank

by up to 1.80%

All

Capital One Savings

by up to 2.00%

All (didn't change with last BR cut)

Close Brothers

by up to 2.00%

All/Money Market Reserve (did not change Oct)

Hoare & Co

by up to 2.00%

All

Vernon BS

by up to 2.00%

All

Source: Moneyfacts.co.uk 25.11.08

 

 

Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry. 

 

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