Interest Rate Cuts

[Sarah]

New year! New direction! New thread!

"Biggest fixed rate savings cuts in over a decade"

Published: 19/12/2023

Moneyfacts UK Savings Trends Treasury Report data shows fixed rate bonds and ISA average rates had the biggest month-on-month rate cuts recorded in over a decade.

• The average easy access rate fell to 3.17%, the first fall since September 2021. The average notice rate rose to 4.43% and stands at its highest point on Moneyfacts’ records (this data set began in 2007).
• The average easy access ISA rate rose month-on-month to 3.31% and stands at its highest point since December 2008 (3.74%). The average notice ISA rate rose to 4.22% and is at its highest since November 2008 (4.91%).
• The average one-year fixed bond fell for a consecutive month to 5.13%, the biggest month-on-month fall since February 2009. The average longer-term fixed bond fell for a consecutive month to 4.76%, seeing its biggest month-on-month fall since December 2012.
• The average one-year fixed ISA fell for a consecutive month to 4.99%, falling below 5% for the first time since July 2023, the biggest month-on-month fall since February 2013. The average longer-term fixed ISA rate fell for a consecutive month to 4.65%, seeing its biggest month-on-month fall since December 2012.
• Product choice overall fell month-on-month to 1,918 savings deals (including ISAs).
• The number of live savings accounts that pay more than the Bank of England base rate (5.25%) fell month-on-month, just over 90% of accounts now fail to pay above base rate.

https://www.moneyfactsgroup.co.uk/media ... -a-decade/

MSE - Top Savings Accounts
https://www.moneysavingexpert.com/savin ... -interest/

[Sarah]

Ford Money

We’re writing to let you know we will be reducing the rate on your Flexible Saver account effective 18 January 2024 as follows:

Current rate New lower rate
4.84% Gross 4.75% Gross

https://www.fordmoney.co.uk/savings-pro ... ible-saver

Shawbrook

Easy Access Account Issue 37
5.00% AER

https://www.shawbrook.co.uk/direct/savi ... sy-access/

However, their Easy Access Account Issue 36 is still paying 5.11% AER.
https://www.shawbrook.co.uk/media/5994/ ... 20-274.pdf

[Sarah]

Marcus 1 Year Fixed Rate Saver 5.25% AER/gross
https://www.marcus.co.uk/uk/en/savings/fixed-term-saver

Just opened and started to fund this account - very easy (only a few clicks) for existing customers. It's not listed in the MSE or Moneyfacts tables, yet seems to be relatively competitive and the interest rate is unchanged since October 2023.

How do folks feel about longer fixes right now?

[MrsBear]

Took out 2 and 3 year bonds with Aldermore and NS&I a few weeks ago. Have some bonds maturing in Feb 24, so will look at rates again then. Personally, I would not be considering anything longer than 3 y at the mo (but that´s not based on any insider knowledge )

[Sarah]

Virgin Money M Plus Saver

We’re writing to let you know that on 19 March 2024, we’ll be reducing the interest rate payable on your M Plus Saver account.

The current interest rates are 3.55% and 2.52% AER and the new rates will be 2.50% and 2.00% AER depending on your balance.

[Sarah]

Ford Money

We’re writing to let you know we will be reducing the rate on your Flexible Saver account effective 22 February 2024 as follows:

Current rate New lower rate
4.75% Gross 4.51% Gross

https://www.fordmoney.co.uk/savings-pro ... ible-saver

[Sarah]

Shawbrook Easy Access Account Issue 36

We will be reducing the interest rate on your Easy Access account on 5 March 2024.

Here are the key details you need to know::

Current Rate 4.99% Gross / 5.11% AER (variable/monthly)
New Rate 4.89% Gross / 5.00% AER (variable/monthly)

[Sarah]

Santander Easy Access Saver Limited Edition (Issue 3) drops by 1% in May.

The interest rate on your Easy Access Saver Limited Edition (Issue 3) will reduce from 5.20% AER/gross (variable) to 4.20% AER/gross (variable) on 20 May 2024

viewtopic.php?f=5&t=90589&p=278956#p278956

[Sarah]

MBNA (Lloyds Bank) Fixed Saver 1 Year 5.20% AER/gross
https://www.mbna.co.uk/savings/fixed-saver.html

I wouldn't be surprised to see this account cut or withdrawn soon.

[Luke_PieStalker]

Greedy banks slashing rates long before the BOE even have done so.

Lucky i locked a lot in at 5.5-6.00% for 2 years but ISAs not as good