Overview
- NatWest has emailed customers to confirm savings rate reductions taking effect on 19 January, including Digital Regular Saver dropping from 5.50% to 5.25% and Flexible Saver (£1–£24,999) from 1.06% to 1.00%.
- The Bank of England’s Monetary Policy Committee lowered the base rate from 4% to 3.75%, with Governor Andrew Bailey signalling a gradual downward path for rates.
- Which?, citing Moneyfacts, says instant-access accounts show the widest gaps, with a typical £10,000 balance earning about £115 at a 1.15% high-street rate versus roughly £448 at 4.48%, a difference of more than £300.
- Savers are advised to verify Financial Services Compensation Scheme coverage, which protects up to £120,000 per eligible person per firm, especially when considering lesser-known or online providers.
- Experts warn to track expiring bonus rates and bond maturities—such as Chase’s Saver paying 4.5% AER including a 12‑month 2% bonus before dropping to 2.5%—and to consider savings platforms for switching while watching for any fees.