Interest rates on savings accounts slashed across the board

Now that the BoE has kept the base interest rate at its historically low point of 0.5 per cent for 17 consecutive months, more rate cuts are cropping up at banks and building societies across the UK.

Fixed interest rates have been falling steadily over recent weeks, and now variable rate savings accounts are experiencing the same rate slashes.  Additionally any new accounts being offered by these financial institutions are coming with introductory rates much less than those in the past.

Barclays-owned Standard Life Bank recently informed its customers of a rate adjustment of up to 0.5 per cent starting this October.  This comes on the heels of Barclay’s announcement of £3.95bn  in profits for the first half of 2010.

Standard Life is also cutting its rates on various ISA programmes as well; its 50 Day Notice ISA is seeing its rates slashed by at least 1.25 percent, perhaps even higher depending on the balance in your particular account, and its no-tax cash ISA is dropping three tenths of a percentage point to 2.3 per cent.

Its Select Freestyle ISA, which is available to customers with Freestyle-branded mortgages, will be dropped half a percentage point to 2.8 per cent, and its Direct Access telephone account is being cut by up to 0.3 per cent in pre-tax money.  The bank’s 50 Day Notice account is also subject to this redction, in addition to its Children’s 50 Day Notice as well.

The No Notice Saver account, a phone-based account offered by West Bromwich BS, will be dropping to 2.3 per cent, a reduction of 0.3 per cent, the second such cut savers have experienced since its July 2009 launch date; the original rates stood at 2.8 per cent unless your account does not meet the £1,000 threshold, which reduces your return to a mere 0.05 per cent.

The bank’s Branch Easy Access Saver saw a rate reduction to 2.3 per cent as well after a reduction of 0.35 percentage points.  Like the No Notice saver, the account debuted this past July at 2.85 per cent.

Norwich & Peterborough BS  recently informed that three of the easy access accounts it offers to savers will experience rate cuts of up to one quarter of one per cent starting 6 October, while a   reduction to a 1 per cent rate will go into effect on its  Plus Savings and Family Access; its Family Young Saver account will be reduced to 1.75 per cent.

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