Shocking fortnight for savers as top rates tumble
Easy access accounts have been hit particularly hard, with Virgin Money triggering a domino effect after slashing its table-topping 1.5 per cent deal to 1.43 per cent.
Within days, Marcus had reduced its rate from 1.5 per cent to 1.45 per cent and Cynergy Bank had replaced its 1.5 per cent deal with a lower rate of 1.45 per cent.
Ford Money, which pays 1.42 per cent, has withdrawn its deal completely to new customers.
Rachel Springall, finance expert at rate monitoring service Moneyfacts, said providers have pulled and cut rates to “adjust their market position to cope with growing demand”.
Rates on fixed rate bonds have also decreased over the past two weeks, with some cut on several occasions in a short time-frame.
Islamic bank BLME cut its expected profit rate on 4 September from 2.50 per cent to 2.30 per cent. It had offered 2.75 per cent up until 28 August.
OakNorth also introduced a series of rate cuts within a matter of days, specifically on its 2-year fixed rate bond, which now offers 1.95 per cent, down from 2.01 per cent. It had been paying 2.04 per cent until 27 August.
Masthaven Bank, Atom Bank and Metro Bank have also all reduced best buy rates recently.
Springall said: “It is as clear as day to see how delicate the savings market can be, which is why savers should never assume that the top rates will be around forever.
“As is proven from the last fortnight of cuts, savers need to be quick with their decision-making, or they could miss out.”