Today's decision by the Bank of England to cut interest rates by half a percentage point to yet another new low looks set to spell more pain for savers. After six consecutive months of reductions, base rate has plunged from 5% to 0.5%, and it is those of you that have sensibly squirreled some money away who will have been hurting the most, as the interest you earn on your savings has plummeted. However, following today's announcement, some banks and building societies are revealing a more sympathetic side. Barclays has promised to protect its customers by holding savings rates unchanged, while Yorkshire BS is set to continue its policy of not passing on the full cut to its rates. With other banks and building societies certain to make their intentions known in the coming weeks, changes in the savings best buy tables are sure to come thick and fast. Meanwhile, for those you yet to use your ISA allowance for this tax year, cash ISAs may prove of particular interest as providers attempt to outdo each other in the rate and special offer stakes as the deadline looms larger. Meanwhile, the rate cut will have been welcomed by certain borrowers, with Lloyds TSB/Cheltenham & Gloucester, Skipton BS, Halifax and Nationwide amongst those promising to pass on the full half percentage point reduction to their standard variable mortgage rates so far.
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 Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.