Lenders implement interest rate cuts

The recent interest rate cut has prompted 24 savings providers to cut their rates, with 14 implementing a reduction of between 1.5 and 2.55 per cent, Uswitch.com has found.

Lloyds TSB, Capital One Savings and Irish Nationwide are among the lenders who have reduced their rates, which is likely to be bad news for those looking to save now and avoid debt or bankruptcy problems in the future.

And options for potential savers are also becoming more limited, with 47 lenders withdrawing accounts since the Bank of England’s move.

“In the wake of the base rate cut numerous savings providers have taken drastic action in an attempt to safeguard their margins,” personal finance manager for uSwitch.com Louise Bond explained.

She also noted that customers should “keep a close eye” on their savings account in the event that the “plethora” of changes affects their savings.

The Office of Fair Trading’s ‘Save Xmas’ campaign, which was launched in 2007, has helped change people’s attitude towards saving for the festive season, it was claimed recently.

By Tom Musk