Watch out for over the top rate cuts on savings accounts

Following the recent 0.25% interest rate cut announced by the Bank of England earlier this month it has been revealed that a number of lenders have slashed the interest rate that they are paying on savings, some by way more than the base rate cut.

This means that many savers could lose out by getting a far lower return on their money.

Experts state that many consumers may want to consider switching where possible, with higher rate accounts such as the 6.5% Kaupthing Edge account or the 6.41% ICICI account available.

Many savers will be looking elsewhere for a suitable savings account once the interest rate cuts come into force.

Egg has upset yet more customers by slashing the interest rate on its savings account by 0.5%, which is double the cut applied to the base rate.

Saga, which offers accounts to those aged fifty and over, has gone even further by slashing the rate on its one year fixed account by 0.85%, which is over three times the cut applied to the base rate.

Some financial institutions have announced their savings account interest rate cuts, but others have yet to respond to the base rate cut. The Icelandic bank, Kaupthing edge, has stated that it will be keeping its 6.5% interest rate on savings on hold despite the base rate cut.