More providers cut saving rates

Standard Life and Barclays have become the most recent savings account providers to have cut their savings rates despite the base rate of interest staying steady.

Rates have been cut by up to 0.13 per cent at Standard Life, while Barclays saving customers are now earning up to 0.45 per cent less on their mini-Isas and e-savings.

Mini-Isa customers will now receive four per cent interest, down from 4.45 per cent and e-savers with £25,000 at Barclays will see their rates fall from 4.13 to 4.04 per cent.

Barclays has also introduced different levels of interest for customers. Savers with less than £10 in a cash mini-Isa or a Tessa-only Isa will now receive four per cent interest.

“Introducing new tiers is one way that the banks try to tweak rates without appearing to have cut them,” Rachell Thrussell of Moneyfacts told the Times.

“Another ruse is to cut some rates by quite a lot and others by a minimal amount so that the average rate cut across the accounts is reduced.”

A further ruse is to cut interest rates on different accounts at different times to minimize impact.

NatWest deployed this earlier this year, cutting some rates in January and others in April.

Following the cuts, experts said that two of the best savings accounts now on the market are the 4.85 per cent eSavings2 account at Bradford & Bingley and the Sainsbury’s online account paying 4.75 per cent.

© Adfero Ltd

Leave a Reply

Your email address will not be published. Required fields are marked *