Consumers looking to open a savings account are being urged to choose carefully after several large banks cut the rate of interest offered on some of their accounts.

"The latest rounds of reductions are from some of the main high street players, including Halifax and Nationwide BS," said Rachel Thrussell, head of savings at Moneyfacts.

Although the cuts in interest rates seemed like bad news for consumers, Ms Thrussel said that if consumers shopped around for the best rate available to them, there are still good savings account deals out there.

"Even though rates are being cut, institutions continue to be selective with which products are impacted. In many instances, they still compete for the personal savings account market by offering headline rates to attract new customers."

Using the internet to find better deals is also important to remember, she said.

Although First Direct had cut some rates on selected accounts by up to 0.24 per cent, she explained, their e-savings account had not been changed and still commanded a headline rate of 4.89 per cent.

Ms Thrussel's advice to consumers was clear: "Existing customers should regularly check the interest rates on their accounts to ensure they are still getting the best deal."

© Adfero Ltd