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.
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:
ICICI Bank UK
Anglo Irish Bank
7 Day Notice Issue 2
Easy Access Deposit Issue 2
Whiteaway Laidlaw Bank
60 Day Bonus
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."
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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