Interest rate slash for savings accounts

Wednesday, January 25, 2006

A financial comparison website has urged consumers to check the current interest rate on their savings account following cuts by some of the big names on the high street.

In what seems to be a trend, many banks and building societies are cutting interest rates on certain savings accounts, something Moneyfacts.co.uk is aware of and is advising customers to look out for.

"The latest rounds of reductions are from some of the main high street players, including Halifax and Nationwide building society," said Rachel Thrussell, head of savings at Moneyfacts.co.uk.

"Even though rates are being cut, institutions continue to be selective with which products are impacted. In many instances, they still compete for the personal savings account market by offering headline rates to attract new customers."

Halifax, AA, First Direct and Nationwide have all cut interest rates on savings accounts by up to 0.25 per cent in the last week, bad news for existing customers with savings accounts at these providers.

The news comes at a time when the nation is seemingly beginning to save more than borrow, with Building Societies Association figures showing an increase in savings coupled with a fall in lending.

Get some help finding the right savings account here:
http://www.europinions-finance.co.uk/savings/savings/