Savings Rates Still Not Safe
Friday, April 10, 2009 14:59
Today, the base rate of Bank of England has been maintained at 0.5%. However, the savers should not be complacent and think the savings rate is unlikely to fall any more. Ever since the Bank of England rate was last reduced in March, the majority of providers may have cut the rate on their accounts, but more are likely to follow suit.
Notice accounts could be particularly confusing when it comes to rate cuts. The ones with money deposited in accounts that require a notice period before withdrawning the money, will still not have factored in rate reductions from months ago, which means that the savers may find their rate still to be slashed.
Large providers, such as Barclays and Lloyds, have yet to show their hand while 82% of providers have cut the rates on some of their accounts ever since 5 March.
As the savers need to provide their bank or building society with up to 90 days notice before they withdraw their money, some providers give a similar period of notice to their customers before they slash rates.
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