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Daily Mirror
2 days ago
- Business
- Daily Mirror
Major bank with 2.5million customers making changes to 36 accounts within days
The Co-operative Bank is cutting is making a shocking changes to 36 savings accounts, leaving customers for the worst as they deliver a fresh blow to savers with altered interest rates A major bank with millions of customers is set to make a significant change to dozens of accounts in the coming days. The Co-operative Bank is slashing interest rates on 36 savings accounts, dealing another blow to savers. This move comes hot on the heels of the Bank of England's decision to lower the base rate from 4.25% to 4%, marking the fifth such cut since 2020. While this means lower mortgage payments for homeowners, it often results in smaller returns for savers. This is because the base rate influences the interest rates banks offer on savings accounts and loans, including mortgages. It comes after news that Nationwide will pay bonus £760 into accounts of customers who do one thing. The Co-operative Bank has acted swiftly, announcing that interest rates on dozens of accounts will be reduced starting on August 14 and October 22. On August 14, the Base Rate Tracker accounts will see reductions, with interest rates dropping from 4% to 3.75% and from 3.75% to 3.5%. For instance, if you had £1,000 deposited for 12 months, the interest earned at 4% would have been £40. After the rate drops to 3.75%, you would earn £37.50 - a difference of £2.50. Similarly, with the rate falling from 3.75% to 3.5%, the interest earned would decrease from £37.50 to £35, meaning £2.50 less over the year, reports the Sun From October 22, various other accounts will experience cuts, including the Future Fund, which will see its rate fall from 1.53% to 1.46%, and the Online Saver, dropping from 2.12% to 2.06%. Other accounts affected include the Smart Saver, Select Access Saver 5, and Privilege Premier Savings, with reductions ranging from 4.15% to 3.9% and 3.53% to 3.4%. Cash ISA holders will also feel the pinch, with Cash ISA 2 rates dropping from 3.25% to 3%. However, there's a silver lining as several savings providers still offer returns of up to 5%. With the average bank customer holding around £10,000 in savings, according to Raisin, switching could be a wise decision. To assist you in getting the best returns, we've compiled a list of the top savings rates for each account type below. Other savings accounts An easy-access savings account usually allows for unlimited cash withdrawals. The top rate easy access savings account currently available is from Cahoot, which offers a 5% return - and you only need to deposit a minimum of £1 to set it up. This means that if you were to save £1,000 in this account, you would earn £50 a year in interest. Meanwhile, West Brom Building Society's easy access account offers customers 4.55% back on savings worth £1 or more. Provider Cahoot is offering an interest of 5.00 percent with a minimum investment of £1, paid on the anniversary. Chase* also offers 5.00 percent interest with a minimum investment of £1, paid monthly. Another offer from Cahoot provides 4.55 percent interest with a minimum investment of £1, paid on the anniversary. West Brom BS offers 4.55 percent interest with a minimum investment of £1, paid yearly. Revolut offers 4.50 percent interest with a minimum investment of £1, paid daily. Cynergy Bank and Principality BS both offer 4.45 percent interest with a minimum investment of £1, paid on the anniversary and yearly respectively. Kent Reliance offers 4.41 percent interest with a minimum investment of £1, paid on the anniversary. Chase includes a 2.25 percent 12-month bonus for new customers only. Another option is a notice savings account. These accounts offer better rates than easy-access accounts but still let you access your money more flexibly than a fixed-bond. RCI Bank UK's 95-day notice account offers savers 4.7% back with a minimum £1,000 deposit. This means that if you were to save £1,000 in this account, you would earn £47 a year in interest. Meanwhile, GB Bank's 120-day notice account offers 4.58%, requiring a minimum deposit of £1,000. If you want to build a habit of saving a set amount of money each month, a regular savings account could pay you dividends. Principality Building Society's Six Month Regular Saver offers 7.5% interest on savings. It allows customers to save between £1 and £200 a month. Save the maximum, and you'll earn £25.81 in interest. There are also regular savings accounts where the amount you can save into the account each month is limited, typically to somewhere between £200 and £500. These accounts offer better rates than easy-access accounts but still let you access your money more flexibly than a fixed-bond. For instance, RCI Bank UK's 95 day notice account offers savers 4.7% back with a minimum £1,000 deposit. This means that if you were to save £1,000 in this account, you would earn £47 a year in interest. Meanwhile, GB Bank's 120-day notice account offers 4.58%, requiring a minimum deposit of £1,000.
Scottish Sun
4 days ago
- Business
- Scottish Sun
Major bank with 2.5million customers making huge change to 36 bank accounts within days – you'll be worse off
We've listed the alternatives to help you maximise your earnings CUT IT OUT Major bank with 2.5million customers making huge change to 36 bank accounts within days – you'll be worse off A MAJOR bank with millions of customers is make a huge change to dozens of bank accounts starting within days. The Co-operative Bank is cutting interest rates on 36 savings accounts, delivering a fresh blow to savers. It comes just days after the Bank of England lowered the base rate from 4.25% to 4%, marking the fifth interest rate cut since 2020. The decision means lower mortgage payments for homeowners but often leads to smaller returns for savers. That's because the base rate impacts the interest rates banks offer on savings accounts and loans, including mortgages. The Co-operative Bank has wasted no time, announcing that interest rates on dozens of accounts will be reduced starting on August 14 and October 22. On August 14, the Base Rate Tracker accounts will see reductions, with interest rates dropping from 4% to 3.75% and from 3.75% to 3.5%. For example, if you had £1,000 deposited for 12 months, the interest earned at 4% would have been £40. After the rate drops to 3.75%, you would earn £37.50 - a difference of £2.50. Similarly, with the rate falling from 3.75% to 3.5%, the interest earned would decrease from £37.50 to £35, meaning £2.50 less over the year. From October 22, various other accounts will experience cuts, including the Future Fund, which will see its rate fall from 1.53% to 1.46%, and the Online Saver, dropping from 2.12% to 2.06%. Other affected accounts include the Smart Saver, Select Access Saver 5, and Privilege Premier Savings, with reductions ranging from 4.15% to 3.9% and 3.53% to 3.4%. Switch bank accounts for free perks Cash ISA holders will also be impacted, with Cash ISA 2 rates falling from 3.25% to 3%. Fortunately, several savings providers still offer returns of up to 5%. With the average bank customer holding around £10,000 in savings, according to Raisin, switching could be a smart move. To help you get the best returns, we've listed the top savings rates for each account type below. What types of savings accounts are available? 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. What's on offer? If you're looking for a savings account without withdrawal limitations, then you'll want to opt for an easy-access saver. These do what they say on the tin and usually allow for unlimited cash withdrawals. The best easy access savings account available is from Cahoot, which pays 5% - and you only need to pay a minimum of £1 to set it up. This means that if you were to save £1,000 in this account, you would earn £50 a year in interest. Meanwhile, West Brom Building Society's easy access account offers customers 4.55% back on savings worth £1 or more. If you're okay with being less flexible about withdrawals, a top notice account could be a great option. These accounts offer better rates than easy-access accounts but still let you access your money more flexibly than a a fixed-bond. RCI Bank UK's 95 day notice account offers savers 4.7% back with a minimum £1,000 deposit, for example. This means that if you were to save £1,000 in this account, you would earn £47 a year in interest. Meanwhile, GB Bank's 120-day notice account offers 4.58%, requiring a minimum deposit of £1,000. If you want to lock your money away and keep the same savings rate for a set time, a fixed bond is a good choice. The best fixed rate currently offered is Vanquis Bank's one-year fixed bond, which pays 4.44%, requiring a minimum deposit of £1,000. Meanwhile, Atom Bank's one-year fixed bond offers 4.42% back on a deposit of £50 or more. This means that if you were to save £1,000 in this account, you would earn £44.20 a year in interest. If you want to build a habit of saving a set amount of money each month, a regular savings account could pay you dividends. Principality Building Society's Six Month Regular Saver offers 7.5% interest on savings. It allows customers to save between £1 and £200 a month. Save in the maximum, and you'll earn £25.81 in interest. While regular savings accounts look attractive due to the high interest rates on offer, they are not right for all savers. You can't use a regular savings account to earn interest on a lump sum. The amount you can save into the account each month will be limited, typically to somewhere between £200 and £500. Therefore, if you have more to save, it would be wise to consider one of the other accounts mentioned above.
