Major building society to make big change to 58 savings accounts in weeks
A MAJOR building society will make a big change to 58 savings accounts in weeks.
will slash the rates on a number of its savings accounts.
1
The moves comes after rate-setters on the BoE's Monetary Policy Committee cut the base rate from 4.5% to 4.25%.
This was the fourth interest rate cut since 2020.
The base rate is used by lenders to determine the interest rates offered to customers on savings and borrowing costs.
A base rate cut can mean that mortgage rates are lowered, which is good news for homeowners.
But it can mean that savers lose out as the interest they earn on savings will drop.
As the base rate falls, some savings providers, including Leeds Building Society have chosen to lower the interest rates on some savings accounts.
Some 58 savings accounts provided by the bank will have interest rates lowered.
That includes its Five Access Saver which will have its interest rates lowered from 3.77% AER to 3.55% come June 27.
AER, or Annual Equivalent Rate, is used to show you what you could earn from a savings account over a year.
It's Ronnie The Rhino Youngsaver account for those under 18 will also have its interest lowered.
I've started saving up for next year's energy bills using savvy £1 hack..
Come June 26, the rate will lower from 3.80% AER to 3.65%.
Meanwhile, Vault customers will see interest rates on their account from 3.80% AER to 3.65% come June 26.
The change will take place from June 23, but dates can vary from offer to offer.
You can take a look at the full list of account changes below
1 Year Double Access Cash ISA - Previous rate: 4.35% Tax free§ p.a./AER2 - New rate: 4.15% Tax free§ p.a./AER2 - Implementation date: June 27, 2025
1 Year ISA Holding Account - Previous rate: 3.80% Tax free§ p.a./AER2 - New rate: 3.65% Tax free§ p.a./AER2 - Implementation date: June 26, 2025
1 Year ISA Holding Account (Issue 2, 3 & 4) - Previous rate: 3.80% Tax free§ p.a./AER2 - New rate: 3.65% Tax free§ p.a./AER2 - Implementation date: June 26, 2025
Access ISA (Monthly) - Previous rate: 2.00% Tax free§ p.a./AER2 - New rate: 1.85% Tax free§ p.a./AER2 - Implementation date: June 26, 2025
Access Saver - Previous rate: 2.00% Gross1 p.a./AER2 - New rate: 1.85% Gross1 p.a./AER2 - Implementation date: June 23, 2025
Access Saver (Monthly and Issue 6 & 7) - Previous rate: 2.00% Gross1 p.a./AER2 - New rate: 1.85% Gross1 p.a./AER2 - Implementation date: June 23, 2025
Albion Access Account - Previous rate: 2.00% Gross1 p.a./AER2 - New rate: 1.85% Gross1 p.a./AER2 - Implementation date: August 13, 2025
Blue and Amber Account (Issue 2, 6, 8, 9, 11, 13, 14 & 15) - Previous rate: 2.00% Gross1 p.a./AER2 - New rate: 1.85% Gross1 p.a./AER2 - Implementation date: June 23, 2025
Caringsaver - Previous rate: 2.00% Gross1 p.a./AER2 - New rate: 1.85% Gross1 p.a./AER2 - Implementation date: June 23, 2025
Charitable Foundation Account - Previous rate: 2.00% Gross1 p.a./AER2 - New rate: 1.85% Gross1 p.a./AER2 - Implementation date: June 23, 2025
Child Trust Fund Bonus Saver - Previous rate: 4.40% Tax free§ p.a./AER2 - New rate: 4.25% Tax free§ p.a./AER2 - Implementation date: June 27, 2025
Dinosaver - Previous rate: 3.80% Gross1 p.a./AER2 - New rate: 3.65% Gross1 p.a./AER2 - Implementation date: June 26, 2025
E-ISA - Previous rate: 2.00% Tax free§ p.a./AER2 - New rate: 1.85% Tax free§ p.a./AER2 - Implementation date: June 27, 2025
E-ISA (Issue 7, 8 & 9) - Previous rate: 2.00% Tax free§ p.a./AER2 - New rate: 1.85% Tax free§ p.a./AER2 - Implementation date: June 27, 2025
E-Saver - Previous rate: 2.00% Gross1 p.a./AER2 - New rate: 1.85% Gross1 p.a./AER2 - Implementation date: June 26, 2025
E-Saver (Issue 7, 8 & 9) - Previous rate: 2.00% Gross1 p.a./AER2 - New rate: 1.85% Gross1 p.a./AER2 - Implementation date: June 26, 2025
Five Access Saver - Previous rate: 3.70% Gross1 p.a./AER2 - New rate: 3.55% Gross1 p.a./AER2 - Implementation date: June 27, 2025
Five Access Saver (Issue 2, 3 & 4) - Previous rate: 3.70% Gross1 p.a./AER2 - New rate: 3.55% Gross1 p.a./AER2 - Implementation date: June 27, 2025
Home Deposit Saver - Previous rate: £100 - £30,000 - 4.90% Gross1 p.a./AER2; Above £30,000 - 2.00% Gross1 p.a./AER2 - New rate: £100 - £30,000 - 4.80% Gross1 p.a./AER2; Above £30,000 - 1.85% Gross1 p.a./AER2 - Implementation date: June 27, 2025
Home Deposit Saver (Issue 2 & 3) - Previous rate: £100 - £30,000 - 4.90% Gross1 p.a./AER2; Above £30,000 - 2.00% Gross1 p.a./AER2 - New rate: £100 - £30,000 - 4.80% Gross1 p.a./AER2; Above £30,000 - 1.85% Gross1 p.a./AER2 - Implementation date: June 27, 2025
ISA Saver - Previous rate: 2.00% Tax free§ p.a./AER2 - New rate: 1.85% Tax free§ p.a./AER2 - Implementation date: June 26, 2025
ISA Saver (Issue 4 & 5) - Previous rate: 2.00% Tax free§ p.a./AER2 - New rate: 1.85% Tax free§ p.a./AER2 - Implementation date: June 26, 2025
Limited Issue Online Access Account (Issue 61 & 66) - Previous rate: 4.30% Gross1 p.a./AER2 - New rate: 4.15% Gross1 p.a./AER2 - Implementation date: June 26, 2025
Limited Issue Online Access Account (Issue 65) - Previous rate: 4.42% Tax free§ p.a./AER2 - New rate: 4.17% Tax free§ p.a./AER2 - Implementation date: June 26, 2025
Limited Issue Online Access ISA (Issue 66) - Previous rate: 4.20% Tax free§ p.a./AER2 - New rate: 4.10% Tax free§ p.a./AER2 - Implementation date: June 27, 2025
Limited Issue Online Access ISA (Issue 67 & 80) - Previous rate: 4.30% Tax free§ p.a./AER2 - New rate: 4.10% Tax free§ p.a./AER2 - Implementation date: June 27, 2025
Limited Issue Online Access ISA (Issue 68, 69 & 75) - Previous rate: 4.25% Tax free§ p.a./AER2 - New rate: 4.10% Tax free§ p.a./AER2 - Implementation date: June 27, 2025
Limited Issue Online Access ISA (Issue 78) - Previous rate: 4.17% Tax free§ p.a./AER2 - New rate: 4.10% Tax free§ p.a./AER2 - Implementation date: June 27, 2025
Online Access Cash ISA (Issue 1) - Previous rate: 4.25% Tax free§ p.a./AER2 - New rate: 4.10% Tax free§ p.a./AER2 - Implementation date: June 27, 2025
Online Access Cash ISA (Issue 2 & 3) - Previous rate: 4.41% Tax free§ p.a./AER2 - New rate: 4.16% Tax free§ p.a./AER2 - Implementation date: June 27, 2025
Online Access Saver (Issue 1) - Previous rate: 4.31% Gross1 p.a./AER2 - New rate: 4.15% Gross1 p.a./AER2 - Implementation date: June 26, 2025
Online Access Saver (Issue 2) - Previous rate: 4.31% Gross1 p.a./AER2 - New rate: 4.15% Gross1 p.a./AER2 - Implementation date: June 26, 2025
Online Access Saver (Issue 3) - Previous rate: 4.41% Tax free§ p.a./AER2 - New rate: 4.16% Tax free§ p.a./AER2 - Implementation date: June 26, 2025
Regular Saver (Issue 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 56, 57, 59, 60, 61, 62 & 63) - Previous rate: £100 - £6,000 - 4.80% Gross1 p.a./AER2; Above £6,000 - 2.00% Gross1 p.a./AER2 - New rate: £100 - £6,000 - 4.70% Gross1 p.a./AER2; Above £6,000 - 1.85% Gross1 p.a./AER2 - Implementation date: June 27, 2025
Regular Saver (Issue 55 & 58) - Previous rate: £100 - £6,000 - 4.95% Gross1 p.a./AER2; Above £6,000 - 2.00% Gross1 p.a./AER2 - New rate: £100 - £6,000 - 4.85% Gross1 p.a./AER2; Above £6,000 - 1.85% Gross1 p.a./AER2 - Implementation date: June 27, 2025
Ronnie The Rhino Youngsaver - Previous rate: 3.80% Gross1 p.a./AER2 - New rate: 3.65% Gross1 p.a./AER2 - Implementation date: June 26, 2025
Shared Ownership Saver - Previous rate: £100 - £20,000 - 6.00% Gross1 p.a./AER2; Above £20,000 - 2.00% Gross1 p.a./AER2 - New rate: £100 - £20,000 - 5.90% Gross1 p.a./AER2; Above £20,000 - 1.85% Gross1 p.a./AER2 - Implementation date: June 27, 2025
Shared Ownership Saver (Issue 2 & 3) - Previous rate: £100 - £20,000 - 6.00% Gross1 p.a./AER2; Above £20,000 - 2.00% Gross1 p.a./AER2 - New rate: £100 - £20,000 - 5.90% Gross1 p.a./AER2; Above £20,000 - 1.85% Gross1 p.a./AER2 - Implementation date: June 27, 2025
Six Access ISA - Previous rate: 3.65% Tax free§ p.a./AER2 - New rate: 3.50% Tax free§ p.a./AER2 - Implementation date: June 27, 2025
Six Access ISA (Issue 2, 3 & 4) - Previous rate: 3.65% Tax free§ p.a./AER2 - New rate: 3.50% Tax free§ p.a./AER2 - Implementation date: June 27, 2025
Six Access Saver - Previous rate: 3.00% Gross1 p.a./AER2 - New rate: 2.85% Gross1 p.a./AER2 - Implementation date: June 27, 2025
Solihull Saver - Previous rate: £100 - £250,000 - 4.35% Gross1 p.a./AER2; Above £250,000 - 2.00% Gross1 p.a./AER2 - New rate: £100 - £250,000 - 4.20% Gross1 p.a./AER2; Above £250,000 - 1.85% Gross1 p.a./AER2 - Implementation date: June 27, 2025
Treasurers Saver Account - Previous rate: 2.00% Gross1 p.a./AER2 - New rate: 1.85% Gross1 p.a./AER2 - Implementation date: August 13, 2025
Vault - Previous rate: 3.80% Gross1 p.a./AER2 - New rate: 3.65% Gross1 p.a./AER2 - Implementation date: June 26, 2025
Vault (Issue 3, 4 & 5) - Previous rate: 3.80% Gross1 p.a./AER2 - New rate: 3.65% Gross1 p.a./AER2 - Implementation date: June 26, 2025
Young Saver - Previous rate: 3.80% Gross1 p.a./AER2 - New rate: 3.65% Gross1 p.a./AER2 - Implementation date: June 26, 2025
Young Saver (Issue 2, 3 & 4) - Previous rate: 3.80% Gross1 p.a./AER2 - New rate: 3.65% Gross1 p.a./AER2 - Implementation date: June 26, 2025
If you are not happy with the change, it is always worth looking at other providers to see if you can get a better deal.
Websites such as MoneyFacts share the best offers on the market for savings and other types of bank accounts.
OTHER BANKING CHANGES
Leeds Building Society is not the only bank which has lowered the interest on its deals.
Online bank Monzo said it would lower the intertest on its Personal Instant Access Savings Pots from from 3.50% AER to 3.25% AER.
The bank said it would make the changes automatically on May 27 2025.
Elsewhere, Barclays, Nationwide and Lloyds have all confirmed their customers on standard variable rate (SVR) and tracker mortgages will benefit due to the rate cut.
Barclays confirmed all its mortgage products that track the base rate will decrease by 0.25%.
Existing customers will see their rates change from June 1.
Barclays' standard variable rate mortgage is 3.49% above the base rate.
It currently stands at 7.99%, but following today's announcement it will drop to 7.74% on June 1.
Nationwide customers will also see interest rate reductions of 0.25%.
Those on standard variable rate mortgages will start getting their new rate on June 1.
It will drop from 7.24% to 6.99%.Tracker mortgages will also reduce on June 1.
SAVING ACCOUNT TYPES
THERE are four types of savings accounts fixed, notice, easy access, and regular savers.
Separately, there are ISAs or individual savings accounts which allow individuals to save up to £20,000 a year tax-free.
But we've rounded up the main types of conventional savings accounts below.
FIXED-RATE
A fixed-rate savings account or fixed-rate bond offers some of the highest interest rates but comes at the cost of being unable to withdraw your cash within the agreed term.
This means that your money is locked in, so even if interest rates increase you are unable to move your money and switch to a better account.
Some providers give the option to withdraw, but it comes with a hefty fee.
NOTICE
Notice accounts offer slightly lower rates in exchange for more flexibility when accessing your cash.
These accounts don't lock your cash away for as long as a typical fixed bond account.
You'll need to give advance notice to your bank - up to 180 days in some cases - before you can make a withdrawal or you'll lose the interest.
EASY-ACCESS
An easy-access account does what it says on the tin and usually allows unlimited cash withdrawals.
These accounts tend to offer lower returns, but they are a good option if you want the freedom to move your money without being charged a penalty fee.
REGULAR SAVER
These accounts pay some of the best returns as long as you pay in a set amount each month.
You'll usually need to hold a current account with providers to access the best rates.
However, if you have a lot of money to save, these accounts often come with monthly deposit limits.
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