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.

  • ISAs: It is a simple process to transfer your ISA, so do not settle for a low rate. Check out P2P ISAs and stocks and shares ISA, too.

  • 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:

Savings account interest cuts

AccountExisting rateNew rateChanging on
Barclays Everyday Saver0.25%0.05%1st December 2016
Halifax Instant Saver & Instant ISA Saver0.25%0.05%8th December 2016
Lloyds Instant Saver & Instant Cash ISA0.25%0.05%8th December 2016
NatWest Cash ISA & Instant Saver0.25%0.01%31st October 2016
NatWest Premium Saver0.1%0.01%31st October 2016
RBS Cash ISA & Instant Saver0.25%0.01%31st October 2016
RBS Premium Saver0.1%0.01%31st October 2016
Santander Everyday Saver0.25%0.1%1st November 2016

Current account interest cuts

AccountExisting rateNew rateChanging on
Club Lloyds current account4%2%8th January 2017
Santander 123 Reward Account3%1.5%1st November 2016
TSB Classic Plus5%3%*4th January 2017
* Interest paid on amounts up to 1,500.

Current account reward cuts

AccountExisting rewardNew rewardChanging on
Bank of Scotland Reward & Ultimate Reward5 p/m3 p/m1st February 2017
Halifax Reward & Ultimate Reward5 p/m3 p/m1st February 2017