You are here: Home - Saving & Banking - News -

Base Rate cut brings good news for savers

Written by:

UK savers will benefit from yesterday’s 0.25% cut to the Base Rate, as savings providers try and get as much deposits as possible, according to price comparison site Moneysupermarket.

Kevin Mountford, head of savings at the website, said that Abbey has increased the rate on its eSaver Direct account by 0.25%, to 6.5% even though a cut in the Base Rate was widely predicted. Conversely, National Savings & Investments have passed on the full rate cut to its Direct ISA customers, while Kaupthing Edge have attempted to stay near the top of the best buy tables by not passing on the cut.

Mountford said: “Savers really are in the enviable position of being able to pick and choose where they stash their cash – amidst all the gloom around mortgages, institutions are still desperately trying to rake in as much as they can in retail deposits.

“But as ever, people need to check the terms and conditions of their account carefully, as many of the high rates can be made up of a short-term bonus which is usually for a limited time only, or there could be penalties for withdrawal.”


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Investors turning away from gold

Gold prices fell at the beginning of April, temporarily sinking below $900 per troy ounce as commodity markets made a...