Savers continue to suffer as more banks withdraw best buys

With more banks and building societies scaling back their easy access savings account offerings, savers continue to suffer when it comes to making any real returns on their investment.

Coventry Building Society recently shuttered its 3.15 per cent interest rate online banking savings product, and Skipton BS has done the same with its 3.05 per cent online saver as well. Any customers who got in under the wire will keep their headline rates – at least until the bonus rate expires, leaving savers with no choice but to switch providers to maintain even a slightly respectable rate of return.

Other financial service providers to do away with online savers include Principality, which shuttered its 3.01 per cent eSaver 5 offering. The building society unveiled its new issue of the same account, though it only has a 2.85 per cent interest rate attached to it.

Things have gotten so uncertain that the UK’s largest mutual, Nationwide, who has just been criticised for announcing several of its branches will be closed this summer, launched a new service to act as an aid to their customers to keep track of any fluctuations to their interest rates. Nationwide’s new Savings Watch service will either email or text signed-up savers whenever the rates change on their accounts, and goes over and above what banks are required to do under the letter of the law, which is alert you only if ‘material’ changes of 0.26 percentage points or more, though it you have less than £500 in the account in question, there is no requirement to alert you.

© 2021 All rights reserved. Reproduction in whole or in part without permission is prohibited. See our copyright notice.

Tags: , , ,