24 savings providers cut rates

Following the announcement of an unprecedented 1.5% interest rate cut by the Bank of England, uSwitch.com reveals that 24 savings account providers have already cut rates. Unfortunately for savers, over half of these reductions (14) match, and in some cases outstrip, the base rate reduction by up to an additional 1.05%.

Reductions so far:

Lloyds TSB reduced the Easy Saver 2012 by 1.5% and term deposits by up to 2%
Capital One Savings reduced its variable rates and base beater savings account by up to 2%
Norwich & Peterborough Building Society reduced its Gold Savings and Family Regular Savings accounts by 2%
Anglo Irish Bank reduced fixed rate bonds by up to 2.40%
Irish Nationwide reduced personal variable rates by up to 1.65%
Ruffler Bank reduced fixed rates by up to 2.55%
Hoare & Co reduced variable rates buy up to 2%
Close Brothers reduced its Money Market Reserve account interest rate by 2%

Louise Bond, Personal Finance Manager at uSwitch.com, comments: "Providers have once again demonstrated their willingness to act fast and cut rates when it serves their purpose. In the wake of the base rate cut numerous savings providers have taken drastic action in an attempt to safeguard their margins. An alarming 19 providers withdrew some of their products from the market on Friday, immediately closing themselves to new business, and seemingly in an attempt to steer the focus away from future product launches with significantly less competitive rates.

"The plethora of changes brought in by providers highlights the need for consumers to keep a close eye on their savings accounts, many who signed up to best buy saving rates over the last few months could now find that they have one of the most uncompetitive deals on the market. For those consumers still looking to make the most of their savings some of the high variable rate accounts may look appealing, but with further base rate cuts predicted these rates certainly won't stay around for long. Plenty of fixed rate deals have been withdrawn from the market, but for any savers who can afford to lock their cash away for a year or more, the remaining few products are currently the best options."