The recent base rate decreases have resulted in a number of savings providers cutting their rates, with as much as four per cent being taken off some products.
Research by uSwitch.com has revealed that since the base rate cut on December 4th, 47 providers have decreased rates on 100 savings products, with the average reduction being by 1.1 per cent.
Of these changes, 34 providers reduced their variable rate offerings by at least one per cent, with the average being 1.13 per cent.
And those who are in a position to begin working toward becoming debt free may be most affected by the reductions from banks and building societies.
New applicants to Alliance & Leicester’s Save and Protect regular deposit account will now see themselves receiving four per cent less interest than they would have been before the Bank of England’s December base rate cut.
National Savings & Insurance recently called on Britons to increase their saving levels, noting that a decrease in inflation may help those looking to start saving.
By Tom Musk