Overview

• The Bank of England cut its base rate to 4% on August 7, prompting more than 20 lenders to quickly reduce variable savings rates
• Annual inflation reached 3.6% in June and is forecast to hit 4% by September, risking negative returns for savers for the first time since October 2023
• Major banks such as NatWest and Santander and challengers including Atom Bank, OakNorth and Skipton Building Society have trimmed rates on easy access accounts, notice accounts and ISAs
• Some providers, including Lloyds Bank with its 6.25% regular savings account and Principality’s 7.5% six-month deal, are offering higher rates but often with deposit or usage conditions
• Variable-rate mortgage holders are enjoying immediate relief from falling borrowing costs, while homeowners on fixed-rate deals must wait until their terms end