- Most banks and BS will start cutting rates in ten days' time, expert says
- They will account for two changes in Base Rate, that has been cut to 0.1%
- Those opening an Easy Saver account with Lloyds Bank is currently getting 0.1% interest
By Jeff Prestridge for The Mail on Sunday
Updated:
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82 View commentsThe dramatic reduction in the base rate to 0.1 per cent announced by the Bank of England on Thursday has yet to feed through to lower rates for cash savers – but it will.
Anna Bowes, a director of rate scrutineer Savings Champion, says most banks and building societies will start trimming rates in ten days' time.
And when they do, they will be accounting for not one, but the two changes in Base Rate that have taken place this month – cuts that have seen it drop from 0.75 per cent to 0.1 per cent.
Some banks have little scope to trim, given the parsimonious rates already being paid on some accounts.
Bowes says: 'For those with cash in variable rate accounts, their interest rates will come down at the beginning of April. By how much is difficult to gauge, but cuts are inevitable.'
Some financial institutions have little scope to trim, given the parsimonious rates already being paid on some accounts.
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For example, anyone opening an Easy Saver account with Lloyds Bank is currently getting 0.1 per cent interest while those with money in Halifax Liquid Gold are receiving 0.05 per cent.
'It is more important than ever to seek the best rates available,' she says. 'That means shopping around.'
One and two-year fixed-rate savings bonds may offer some solace although savers will have to deposit their money with little-known brands.
For example, OakNorth Bank is paying 1.57 per cent fixed for one year – or 1.66 per cent for two years.
No withdrawals are permitted during the life of the bonds. Savers' money is protected by the Financial Services Compensation Scheme up to £85,000.
THIS IS MONEY'S FIVE OF THE BEST SAVINGS DEALS
Chip* pays 4.84% to holders of its ‘instant access account’. The account can be opened with just £1. Its app only. Money will be held by the UK authorised bank ClearBank.
Charter Savings Bank pays 5.08% to holders of its ‘easy-access savings account’. The account can be opened with £1,000.
MBNA pays a rate of 5.27% on its one-year fixed rate savings account. This deal must be opened online on MBNA’s website and then managed by phone. The minimum deposit is £1,000.
![Savers warned to prepare for another cut in interest rates (7) Savers warned to prepare for another cut in interest rates (7)](https://i0.wp.com/i.dailymail.co.uk/i/pix/2015/09_02/mbna_122x84.jpg)
Raisin UK* is home to a 5.05% one-year fixed rate savings account. It is offered by one of its partner banks Paragon Bank. You can open the account online via Raisin’s savings platform with a minimum deposit of £1,000.
![Savers warned to prepare for another cut in interest rates (8) Savers warned to prepare for another cut in interest rates (8)](https://i0.wp.com/media.sailthru.com/composer/images/sailthru-prod-626/Raisin_122x84.png)
Hampshire Trust Bank pays 5% to holders of its ‘two-year fixed rate deal’. The account can be opened online with a minimum deposit of £1.
![Savers warned to prepare for another cut in interest rates (9) Savers warned to prepare for another cut in interest rates (9)](https://i0.wp.com/img.thisismoney.co.uk/modulepix/hampshiretrust_118x81.jpg)
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