Savers warned as 'big players' cut rates

09 January 2006
A number of banks and lenders have been cutting rates during the last month, and Moneyfacts is warning savers the trend could continue into 2006.

The financial watchdog said consumers need to take control of their savings to ensure they are getting a "decent return" on their money.

Rachel Thrussel head of savings at Moneyfacts.co.uk said although the cut of 0.25 per cent by ING was heavily criticised last month, many of the other 'big players' are also chopping their rates.

"Just because we haven't seen a cut in base rate for five months, savers shouldn't automatically assume that the interest rate on their savings account will remain untouched," she explained.

"On top of the highly publicised rate reduction from ING, we have witnessed cuts from NatWest, RBS, Woolwich, West Bromwich BS and Scarborough BS and we are sure these won't be the last," she added.

On January 3rd NatWest cut the rate on its Young Saver account by 0.23 per cent and RBS cut its Mini Cash IS account rate by 0.15 per cent.

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