Savings rates not falling in line with interest rate cuts

Last Thursday saw the Bank of England cut interest rates a quarter of a percentage point from 5.5% to 5.25%, however, the rates on some savings accounts have come down by far more.

Saga has made bigger-than-expected reductions, the over-50s specialist has cut the rate on its one-year fixed-rate account from 6.35% to 5.50%, a fall of 0.85% compared to the Bank’s 0.25% cut.

Nationwide Building Society has cut rates in accordance with the interest rate cut. It has lowered the rates on its one-year fixed-rate accounts by 0.17% or less while National Counties has cut its one-year fixed rate account by 0.33%.

In the meantime, West Bromwich Building Society has introduced a new account with a 6-month guarantee paying 6.75%. A minimum deposit of £1,000 is required with a maximum £1 million (£2 million for couples).

Finally, after last week’s interest rate cut, Icelandic-owned Kaupthing Edge said it was keeping retaining its saving rate at 6.5% putting it at the top of the easy-access best-buy tables, a position that will be boosted even further following its decision to leave its rate unchanged.

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