What is happening?
Banks and building societies in the UK are cutting their interest rates on savings and current accounts. Some are even dropping the amount they pay you as a reward each month.
This is happening because the Bank of England base rate has dropped to 0.25%.
Does this affect you?
Yes, if you have money in an interest paying current account or savings account then the amount you earn could be due to drop.
What should you do?
Call your bank or building society and ask if the interest on your accounts will be going down.
They may invite you in for a review of your accounts, but this does not guarantee you the best return on your savings as they can only offer you their range of accounts.
You can look for ways to make more money yourself, use our comparisons to find an account that suits the way you want to save:
Instant access accounts: Getting access to your money quickly does not mean you need to accept a low interest rate. Compare easily accessible accounts here.
Regular savings: Build your savings up monthly and get rewarded with a higher interest rate, but only if you do not need access to your money straight away.
High interest current accounts: These can offer the best rates for amounts up to a few thousand pounds, but you will need to go through a credit check when you apply.
If you are paying interest on any debt, think about clearing it instead. Here is more on using your savings to pay off your debt.
Which accounts are changing?
Here are the accounts that are having their interest rate slashed, or rewards changed, and when you need to take action by:
Current account interest cuts
|Account||Existing rate||New rate||Changing on|
|TSB Classic Plus||5%||3%*||4th January 2017|
|Club Lloyds current account||4%||2%||8th January 2017|
Current account reward cuts
|Account||Existing reward||New reward||Changing on|
|Bank of Scotland Reward & Ultimate Reward||£5 p/m||£3 p/m||1st February 2017|
|Halifax Reward & Ultimate Reward||£5 p/m||£3 p/m||1st February 2017|
Credit card changes
Santander 123 credit card: The maximum cashback you can earn is being capped at £9 per month (£3 for each interest rate category) from February 2017.
The amount you can earn interest from each month is also reducing. You will only be able to earn 3% on a maximum spend of £300 in supermarkets, 2% on a maximum spend on £150 in department stores and 1% on a maximum spend of £100 on travel.
NatWest Black credit card: The following benefits will be removed from 31st March 2017 - home emergency service, Green Flag European roadside assistance, airport lounge access and personal assistant concierge service.
These cuts are in addition to the changes made in December 2016, which saw the account drop its annual fee, travel insurance and extended warranty benefits.