Saver rates slashed by banks and building societies
Friday, May 18th, 2012
As the UK continues to do its best to resist further financial gloominess, savers are being hit by the butchering of interest rates. Several banks and building societies are slashing saver rates, leaving very little in the way of attractive savings accounts.
Halifax has dropped one of its best fixed rate accounts, whilst dropping the eye-catching rates on many others. Saga has dropped its three-year fixed 4% account, as have The High Street bank and Monmouthshire Building Society.
The Close Brothers matching account is now the only one of its kind still available, according to This Is Money. However, this account would need £10,000 banked immediately to start it up.
Two-year fixed ISAs are also taking a hit, as the best-buy from BM Savings fell from 4.05% to 3.6%. Santander’s 4% is the best two-year fixed available, but with news announced that Moody’s credit agency has downgraded the rating of all Spanish-owned banks, including Santander UK, confidence has taken a tumble. Stock markets and savers alike are not responding well to the news.
As five-year fixed rate accounts receive similar treatment, savers will be scratching their heads wondering where they can get a truly rewarding return on their cash.
David Black, an expert an Defaqto, believes that savers can still find good deals, saying: “‘With the wholesale money market still a pale shadow of what it used to be there is a lot of competition among banks and building societies to attract savings and this can play in favour of savers.”

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