Particle.news
Download on the App Store
9 ARTICLES
·
last mo.

Big Banks Cut Savings Rates as Best Deals Shift to Smaller Providers

With inflation projected near 4%, many variable-rate savers risk losing value in real terms unless they secure stronger deals.

Image
Image
Image
Image

Overview

  • Following the Bank of England’s 7 August cut to a 4% base rate, more than 20 providers have reduced variable savings rates, with some cuts exceeding 0.25 percentage points, according to Moneyfacts.
  • NatWest will lower several savings accounts on 28 August — Digital Regular Saver, Flexible Saver and Savings Builder to 1.15%, Cash ISA to 1.40% and Help to Buy ISA to 2.05% — prompting warnings for customers to consider moving funds.
  • Moneyfacts’ latest best-buy lists largely exclude the big four banks, and analysts advise locking in competitive offers as lenders continue to trim rates.
  • Top regular saver deals include 7.50% AER at Principality Building Society, 7.10% at Zopa and 7% at The Co‑operative Bank, while Club Lloyds’ Monthly Saver offers 6.25% for existing customers with monthly deposit limits.
  • One-year fixed bonds currently peak around 4.43% (JN Bank), leading easy-access rates run roughly 4.55%–4.84% with bonuses, and the average savings rate has fallen to about 3.48% as June CPI hit 3.6% with a Bank of England projection near 4%.