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Co-operative Bank to Cut Rates on 36 Savings Accounts After BoE Base Rate Reduction

With the BoE base rate now at 4.00%, savers are rushing to lock in fixed-rate deals to counter falling yields.

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Overview

  • The Bank of England trimmed its base rate from 4.25% to 4.00% on August 7, prompting lenders to adjust variable savings rates downward.
  • The Co-operative Bank announced it will reduce rates on 36 savings products, with Base Rate Tracker accounts dropping to 3.75% on August 14 and to 3.50% on October 22, and other products like the Future Fund and Online Saver falling below 1.50% and 2.10% respectively.
  • Moneyfactscompare reported that the average easy-access savings rate has fallen to 3.48% this week, down from 3.50% last Monday.
  • Analysts from Moneyfactscompare identified regular savings deals offering up to 7.50% AER at Principality Building Society, followed by Zopa at 7.10% and The Co-operative Bank at 7.00%.
  • Martin Lewis’s MoneySavingExpert team highlighted challenger-bank products outpacing the base rate, including Shawbrook’s 4.31% Cash ISA, Paragon’s 4.28% 15-month fixed ISA, West Brom BS’s 4.55% easy-access saver and Chase’s 2.75% variable rate plus a 2.25% bonus.