Co-operative Bank savings account interest rates to be cut

www.moneynews.co.uk > Banking > Co-operative Bank savings account interest rates to be cut

Co-operative Bank savings account interest rates to be cut

Fri 16th Jan 2009

The Co-operative bank has announced that it will reduce the rate of interest it offers on its savings accounts, following the Bank of England's base rate cut last week.

However the bank revealed that its mortgage rates could not be reduced and that its standard variable rate (SVR) for mortgages would remain at 4.74 per cent.

While the Co-operative bank guaranteed that its main savings products would continue to pay interest of over one per cent, it said it would reduce the rate of interest on these accounts by 0.25 per cent.

John Barker, head of retail liabilities at the Co-operative Bank claimed that the changes would help the bank look after the interests of its savings account customers.

He added: "The Co-operative Bank has consistently passed on interest rate reductions to our mortgage borrowers. However, we have ten times the number of savers compared to mortgage borrowers and we have a clear duty of care to also look after the interests of these customers too."

Recently, the bank reported that the total amount deposited in its accounts had risen over the past year, despite the financial crisis.

Click here for more banking news

Related News : Banking
	Young people 'should be taught to save'
	Families 'should plan for their children's future
	Switching bank accounts 'not as easy as banks portray'
	Brits facing finance difficulties 'should talk to their bank'
	Brits 'should utilise Isa allowances'
	Brits advised on investment options
	Children 'should be given bank accounts at 16'
	Falling inflation 'could help Brits save'
	Money worries 'are mounting for many'
	Contactless payment 'is secure and convenient'

Related News : Cooperative
	Co-op announces banking improvements to premier accounts
	Platform launches innovative let-to-buy mortgage product
	Mortgage lending increased in June, according to CML
	Co-op closes older pension schemes but promises increase in contributions
	Co-operative announces reductions to mortgage rates
	Co-operative Bank and Britannia reduce mortgage rates
	Platform says remortgage deals set to be a focus
	Co-operative Bank wants fixed rate mortgage customers to make further payments
	Platform hopes to develop its buy to let mortgage presence
	Savings account provider Co-operative highlights ethical success