The banking giant said existing customers with variable rate accounts will see their rate reduced by up to 0.25% from Thursday 8 December. It has written to all affected customers.

It is also reducing the Help to Buy ISA rate for existing customers by 0.50% meaning they will earn 1.50% instead of 2%.  The scheme allows first-time buyers the opportunity to save for a deposit, earn tax-free interest and receive a boost to their coffers from the Treasury.

Customers with a Junior ISA are also affected by the rate reduction – they’ll see their rate fall by 0.50% to 2.50%.

The rate cuts follow the decision by the Bank of England to cut the Base Rate from 0.5% to a record low 0.25%.

A Lloyds Bank spokesperson, said: “We regularly review our savings range and make changes in line with the market and our competitors. In line with our previous announcements following the Bank of England base rate cut, we are reducing the rates for our existing customers with variable rate accounts.  We are writing to all affected customers to give at least two months’ notice of these rate changes, in order to provide them with the opportunity to change accounts should they wish to do so.”