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as in the space of just two weeks, 20 easy access accounts or easy access ISAs paying a top 10 rate have either been withdrawn or had their rates reduced.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period between the 16 November and 30 November 2020 saw a total of 25 easy access account rates being reduced or withdrawn, of which just five were outside the top 10 highest-paying rates.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 Not only have cuts been made, but some deals have been withdrawn entirely.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.”
