Savers suffer again but help may be at hand - Savings - News - Moneyfacts

News

Savers suffer again but help may be at hand

Savers suffer again but help may be at hand

Category: Savings

Updated: 05/03/2009
First Published: 05/03/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

6 of the best monthly interest savings accounts

Monthly interest savings accounts pay interest on your savings each month – as opposed to yearly – and therefore allow you to take a regular income from your hard-earned cash.

Savings being used as a festive financial buffer

Good news from RCI Bank UK – its latest research shows that many of us are saving more than we were a year ago, but the question is, will you be dipping into that buffer to cover the cost of Christmas?

6 of the best easy access savings accounts

Easy-access savings accounts are as simple as they sound – they allow you to access your money whenever you need it, without having to give advance notice, and they also allow you to pay into them at any time. Here are six of the best.
 
Close