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Savers waiting to get a top savings rate will be disappointed that a number of providers have cut their chart-topping rates in the past two weeks, research from Moneyfacts.co.uk reveals.
One of the hardest-hit charts has been the easy access savings chart, which has seen all three providers cutting the previous top rate of 1.50%, resulting in the top rate now being offered at 1.48%. Saying this, many of the charts have been impacted, including many fixed rate bond terms seeing a reduction when the Bank of London and The Middle East (BLME), which has been dominating these charts over the summer, cut several of its rates.
Selection of withdrawn or reduced savings deals (27.8.19 - 9.9.19)
|Provider||Product||Gross rate at £10,000||Withdrawn, availability or after cut||Position in sector at £10,000 gross|
|BLME||5 Year Fixed||2.50%*||2.30%||Was top rate|
|Paragon Bank||2 Year Fixed||1.95%||1.90%||Was top 10|
|OakNorth||24 Month Fixed||2.01%||1.95%||Was top 10|
|United Trust Bank||15 Month Fixed||2.00%||1.85%||Was top 10|
|Masthaven Bank||2 Year Fixed||2.05%||1.98%||Was top 10|
|Atom Bank||1 Year Fixed||2.00%||1.80%||Was top 10|
|Metro Bank||18 Month Fixed||2.00%||1.95%||Was top 10|
|Metro Bank||1 Year Fixed||1.90%||1.85%||Was top 10|
|OakNorth||12 Month Fixed ISA||1.55%||1.49%||Was top 10|
|Virgin Money||Double Take E-Saver||1.50%||1.43%||Was top rate|
|Cynergy Bank||Online Easy Access Account||1.50%||Withdrawn and replaced 1.45%||Was top rate|
|Marcus by Goldman Sachs®||Online Savings Account||1.49%||1.44%||Was top rate|
|Ford Money||Flexible Saver||1.42%||Now existing customers only||Was top rate|
|Sainsbury's Bank||Defined Access Saver||1.32%||1.29%||Was top 15 (no bonus)|
*Sharia’a compliant, pays an expected profit rate
Rachel Springall, finance expert at Moneyfacts.co.uk, said: “Savers will be disappointed and frustrated to see the savings market weakening, especially if they were eyeing up the top rates and have subsequently missed the boat. Indeed, over just the past fortnight, we have seen some of the best rates in the market slashed and some have been pulled from new customers entirely.
“Providers making these bold moves are doing so to adjust their market position to cope with growing demand. Savers turning to easy access accounts as a safe haven for their cash would find that Virgin Money’s rate cut on its Double Take E-Saver created a rate cut domino effect. Within just a few days, Marcus by Goldman Sachs® cut its 1.49% gross (1.50% AER) deal, and Ford Money and Cynergy Bank withdrew their deals to new customers, with the latter now reintroduced with a lower rate of 1.45%.
“Fixed rate bonds have also seen reductions over the past two weeks, with some cut on several occasions in a short timeframe. Indeed, Bank of London and The Middle East (BLME) currently offers a five-year fixed deal at 2.30% as an expected profit rate after a 0.20% cut on the 4 September down from 2.50%, but it had offered 2.75% until the 28 August – these cuts were just one week apart. OakNorth is another brand to cut its rates in a short space of time, specifically its 24-month fixed deal in just nine days in fact, now offering 1.95% down from 2.01%, while it had offered 2.04% until the 27 August.
“It is as clear as day to see how delicate the savings market can be, which is why savers should never assume that the top rates will be around forever. As is proven from the last fortnight of cuts, savers need to be quick with their decision-making, or they could miss out.”
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