Overview

• NatWest and RBS cut interest on four instant-access savings products from 1.25% to 1.15% on July 15, followed by HSBC’s reductions on July 21 and Co-op Bank’s on July 23.
• Standard variable savings rates on major high-street banks now start at 1.15% AER, yielding just £185 a year on an average £16,067 balance.
• Challenger banks are offering far more competitive deals, with Chase’s easy-access account paying 5% AER for the first 12 months and Plum’s Cash ISA at 4.98% AER.
• Nationwide Building Society’s fixed-rate Cash ISAs deliver 3.8% AER on one- to three-year terms, allowing savers to lock in guaranteed returns.
• Analysts predict a further Bank of England base rate cut in August, intensifying the urgency for savers to switch out of stagnant ‘zombie’ accounts and secure higher rates.