More banks cut savers rates

13 January 2006
Despite the Bank of England's decision to keep interest rates on hold, savers are being warned of the ever decreasing rates at their banks.

Last week financial website urged savers not to become complacent about their account rates as several big ten financial institutions had slashed their deals.

And this week, Rachel Thrussell, head of savings at Moneyfacts is continuing that warning, as several more financial corporations drop their rates for savers.

Ms Thrussel said: "Even though the Bank of England today announced that Base Rate would remain at 4.50 per cent, savers should not be complacent, believing that their savings account will remain untouched, and should continue to shop around for the best deal.

"In addition to the already reported reductions from ING, NatWest, RBS, Woolwich, West Bromwich BS and Scarborough BS, this week we have seen cuts from Abbey, Alliance & Leicester, Lloyds TSB and Manchester BS."

On January 9th Alliance & Leicester cut their Easy Saver account rate by 0.25 per cent to 2.6 per cent and also their Phonesaver by 0.35 per cent. The same day Abbey cut its Easy ISA by 0.1 per cent to 4.5 per cent.

Ms Thrussel added: "New Year resolutions come and go quickly but maybe one to keep this year would be to keep a close eye on your savings provider to ensure you are still getting the rate you signed up for."

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