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Savers still waiting to see if their rates will be cut

Savers still waiting to see if their rates will be cut

Category: Savings

Updated: 31/10/2008
First Published: 15/01/2008

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 It is now over 6 months old so the content may be out of date.

Five weeks on from Decembers shock reduction in base rate, many experts are predicting yet another cut tomorrow. Despite the festive period we would have expected the dust to have settled by now, with most savings account providers having made a decision. But some savings account providers are still undecided, with some savers happily sitting on higher than expected return.

Of the 116 savings account providers 12 have not announced a drop in their savings rates. Of these only Cumberland BS has announced a savings rate commitment to their savers guaranteeing not to change their savings rates until April 2008. A brave move considering the current climate, and almost certain predictions of a further rate cut within the not so distant future.

22 savings account providers have cut some savings rates on either individual savings accounts or tiers by more than the quarter point reduction imposed by the Bank of England. These include some of the larger savings account providers, such as HSBC, Alliance & Leicester, Halifax, Lloyds TSB, NatWest and Royal Bank of Scotland.

Such large cuts are disappointing, savers should invest a little time to check their current savings rate and how it compares to the savings account market. Don't accept a poor paying savings account, vote with your feet. Savings rates above 6% are easily found, so don't settle for a gross savings rate of anything less than 5.35% if you are a standard rate tax payer otherwise in the longer term your savings will fall in value.

Savings account providers who have passed on more than the 0.25% cut:

  • Chelsea BS +0.30%
  • Derbyshire BS +0.30%
  • Dudley BS +0.30%
  • Leeds BS +0.30%
  • Nationwide BS +0.30%
  • Northern Bank (NI) +0.30%
  • Norwich & Peterborough BS +0.30%
  • Scarborough BS +0.30%
  • Britannia BS +0.35%
  • Clydesdale Bank +0.35%
  • First Trust Bank (NI) +0.35%
  • Nat West +0.35%
  • Nottingham BS +0.35%
  • Royal Bank of Scotland +0.35%
  • Sainsbury's Bank +0.35%
  • Yorkshire Bank +0.35%
  • Lloyds TSB +0.40%
  • Bradford & Bingley +0.40%
  • Halifax +0.40%
  • HSBC +0.49%
  • Alliance & Leicester +0.50%
  • Ulster Bank (NI) +0.50%

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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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