Current account providers cut in-credit interest rates

During a week of financial frenzy, research from uSwitch.com reveals that six current account providers have reduced in-credit interest rates by as much as 0.99%.

Lloyds TSB - rates cut across the Premier Plus, Platinum Plus, Gold Plus and Classic Plus by 0.48% to 3.45% on accounts from £1 - £2,500

Intelligent Finance - cut by 0.99% to 1.24%

Nationwide Building Society - Flex Account cut by up to 0.50%
Flex Account (£1,500 funding per month) rate reduced by 0.50% to 3.00%
Flex Account (£1,000 funding per month) rate reduced by 0.50% to 1.50%
Flex Account (£500 funding per month) rate reduced by 0.40% to 0.10%

Halifax - Asset Reserve Cheque Account cut by 0.50% to 1.60%

Coventry Building Society - Callsave Moneymanager, Branchsave Moneymanager, and First accounts reduced by up to 0.50%
Callsave Moneymanager - (£1 - £2,000) rate reduced by 0.50% to 2.65%
Callsave Moneymanager - (£2,001+) rate reduced by 0.50% to 3.75%
Branchsave Moneymanager rate reduced by 0.05% to 0.10%
First rate reduced by 0.48% to 4.98%

Norwich and Peterborough Building Society - Gold Current Account reduced selected credit interest rates by 0.50%
Gold Current Account (£500 to £1,499 funding per month) rate reduced by 0.50% to 2.45% on balances up to £5,000
Gold Current Account (£1,500+ funding per month) rate reduced by 0.50% to 3.45% on balances up to £5,000

Louise Bond, Personal Finance Manager at uSwitch.com, comments: "This revenue-boosting move by six providers to reduce in-credit current account interest rates conveniently came in a week when headlines were focused on mortgage and savings rates. Those cynics among us could be forgiven for thinking that, whilst attention was diverted towards the base rate decision, providers were hoping that these rate reductions would slip unnoticed under the radar.

"Whilst wasting no time in inflicting rate cuts on savings and current accounts, cuts on borrowing to help ease the intensifying financial strain on customers have fallen on deaf ears in recent months. Consumers have faced rocketing loan rates, increases to mortgage tracker rates, and minimal SVR reductions in response to the base rate cuts. The jury is also still very much out as to how much of last week's drastic 1.5% cut will be passed on to borrowers as banks await the impact on the Libor rate which still sits at 4.49%."

"Historically, credit current account interest rates have been rather pitiful, and many of the big banks still offer as little as 0.1%. Unfortunately, with increasing consolidation in the banking sector, potentially resulting in a reduction in the number of competitive products available, consumers must act now to seek out the best deals."