Yet more bad news for savers

Today sees news that selected Barclays savings rates will be hit for the third time in as many months. Savings Builder and Day to Day Savings face a 0.24% reduction on 1 February. Day to Day savings will pay 3.69%; Savings Builder will pay 4.17% at £10K, 4.31% at £25K, 4.41% at £50K, 4.55% at £100K and 4.65% at £250K.

Rachel Thrussell, Head of Savings at Moneyfacts.co.uk comments: “This is disappointing news, particularly so soon after the previous cuts. A total cut of 0.74% will make a significant dent to your interest return, especially when the rates are far from market leading.

“While other institutions opted for the same two prong rate reduction, just prior to and following December’s rate cut and others changed rates in December by more than the base rate, the maximum cut we have seen so far was 0.55%. Barclays truly stands out from the crowd with a cut almost three times that of base.

“Although the Day to Day Savings account is paying one of the highest rates available on the high street from £1, if you are prepared to bank online, via the telephone or post, rates over 6% are easily achievable.

“With another base rate cut imminent, savers must ensure they get a good deal on their savings rates. The savings market is still healthy with great rates to be found. Following December’s base rate cut, best buy accounts from Icesave, ICICI and Anglo Irish were unscathed.

“So some savers are getting a great deal and have the bonus of not having seen any rate reduction, while others suffer as already average rates are slashed despite the base rate remaining on hold.

“It’s never been more important to check your savings rates it’s easy to switch providers. If you don’t you could potentially be missing out of hundreds of pounds in interest each year.”