20 easy access top 10 rates are cut in just two weeks

Savers faced a disappointing November as in the space of just two weeks, 20 easy access accounts or easy access ISAs paying a top 10 rate have either been withdrawn or had their rates reduced.
A two-week period between the 16 November and 30 November 2020 saw a total of 25 easy access account rates being reduced or withdrawn, of which just five were outside the top 10 highest-paying rates.

Most notably, National Savings & Investments (NS&I) cut its chart-topping rate of 1.15% on its Income Bonds to just 0.01%. This seems to have resulted in many top-paying easy access providers deciding to reduce or withdraw their rates, as Rachel Springall, finance expert at Moneyfacts.co.uk, explained: “This month, NS&I cut its savings rates to as low as 0.01% due to reaching Government funding targets, and so it was understandable to see the institution making a substantial change to deter further funds. However, this move may well have pushed consumers to look at alternatives and now other providers have had an influx of cash from savers seeking a better deal. Not only have cuts been made, but some deals have been withdrawn entirely.

“The cuts and withdrawals are occurring across both easy access accounts and easy access ISAs too, with Paragon Bank the most recent brand to pull its lucrative Triple Access ISA. Within the easy access arena, we could well see more cuts to come as providers continue to adjust their market position. ICICI Bank UK has a market-leading rate of 0.75% gross on its SuperSaver Savings Account (which will be cut to 0.60% in January), based on a £10,000 investment.”

The top rate in the easy access saving chart today is just 0.75%, being offered by ICICI Bank UK on its SuperSaver Savings Account. Savers looking to open this account should be aware that it is only available to new and existing HomeVantage Current Account customers.

The next-best rate is 0.60%, being offered by Aldermore, Earl Shilton Building Society, Teachers Building Society and UBL UK. Aldermore pays this rate on its Double Access Account Issue 1. Earl Shilton Building Society on its Progress account, which is restricted to existing members and/or locals within certain postcodes. Teachers Building Society pays it on its Teachers for Teachers (Issue 1), which is only available to teachers and other educational professionals. UBL UK pays this rate on its Online Easy Access account.

As the last two weeks have shown, savers looking to open a top-paying easy access account should act quickly before the rates are withdrawn or reduced. Springall added: “Overall, the savings market remains volatile, and savers will need to keep a very close eye on the top rate tables and be fast to act if they wish to take advantage. If savers have their cash with a high street bank, they could be earning as low as 0.01% and some NS&I customers could now be on the same rate too, so reviewing accounts and switching is vital.”