uSwitch.com: Savings account interest rates slashed

www.moneynews.co.uk > Banking > uSwitch.com: Savings account interest rates slashed

uSwitch.com: Savings account interest rates slashed

Fri 19th Dec 2008

A study released by uSwitch.com today has revealed that many banks and building societies have slashed the rates of interest they pay to savers in recent months.

According to the price comparison site, 76 providers, including Alliance & Leicester, LV= and Barclays, have cut the rates, with over 150 products being affected in total.

In some cases, such as Alliance & Leicester's Save and Protect regular deposit account, interest rates have been cut by as much as four per cent - 1.5 per cent more than the reduction in the base rate.

Louise Bond, personal finance manager at uSwitch.com, said: "Despite the Governments best intentions to reduce the base rate and fuel the economy, unwittingly they have actually provided a smokescreen for savings providers to slash rates as often and by as much as they please."

The Bank of England cut the base rate of interest by 1.5 per cent in November, followed by a further cut of one per cent earlier this month.

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 : Alliance & Leicester
	Santander savings accounts 'offering 6% interest'
	Santander's pre-tax profits 'have risen by 30%'
	New guaranteed investment products from Abbey and Alliance & Leicester
	Recession 'has not dampened the ambition of young adults'
	New Alliance & Leicester Business Bank current account launched
	Alliance & Leicester 12-month business bond unveiled
	Alliance & Leicester 'to rebrand as Santander' next year
	Alliance & Leicester: 9-month fixed-rate bond launched
	Alliance & Leicester savings account returns
	Santander banks launch new bonds

Related News : Barclays
	Fixed-rate mortgages cut by Barclays
	Barclays make seventh consecutive mortgage rate cut
	Barclays to cut Woolwich fixed rate mortgage interest
	Barclays extends loan to value on Great Escape mortgage deals
	Barclays reduces rates on Bovis Homes mortgage package
	Consumers urged to use Woolwich fixed rate mortgages as protection
	Woolwich offset mortgages 'make sense'
	Savers must adapt to retirement calculator changes, says Barclays
	Barclays urges customers to consider remortgage deals
	Remortgaging deals could help people save money, says Barclays

Related News : LV=
	New annuity launched by LV=
	Retirement age 'to be brought forward by ten years'
	Equity release decisions 'need to be carefully considered'
	Equity release should be carefully considered, claims expert
	Equity release rules simplified by LV=
	Barings report shows huge numbers without pensions
	Equity release to replace pensions, suggests LV= survey
	LV= simplifies equity release regulations and cuts mortgage rates
	LV= urges govt to keep pensions calculator reform on the table
	LV= supports pensions calculator proposal