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Daily Mirror
18 hours 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
3 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.
The Independent
15-04-2025
- Business
- The Independent
Where should you move your money? Best savings accounts for April 2025
When the financial markets suffer higher-than-typical volatility, as they have this month, many people are drawn to the safety of cash savings. Right now, money in the right bank accounts can offer more than just safety. With the Bank of England (BoE) Base Rate currently set at 4.5 per cent, and inflation officially recorded at 2.8 per cent, we're in a rare period where your cash savings can generate inflation-beating returns. If you'd like to take advantage of this window of opportunity, we've collated some of the highest-earning accounts for a range of different circumstances. You can choose between an easy-access account, fixed-term account, or notice account as your needs demand. Rates and accounts are correct at the time of publication but subject to change at any point. Best easy-access savings accounts If you'll need to withdraw your money in the next few months – or if you're not sure when you'll need it – an easy-access account might be best for you. These won't penalise you for making a withdrawal, or make you wait to do so. One of the highest interest rates available is from the Charter Savings Bank Easy Access Account, at 4.59 per cent. You can pay in or withdraw any time you like, without affecting that rate. Another is the Kent Reliance Easy Access Savings Account (Issue 80), offering 4.5 per cent on deposits over £1,000. Or, if you feel more comfortable with a household name brand, the Post Office Online Saver is offering 4.4 per cent interest for the first 12 months. Best limited-access savings accounts If you only need the freedom to make a few withdrawals across the year, there are various options that might work out more profitably for you than a true easy-access account. One of those is the Monument Limited Access Saver, with an interest rate of 4.75 per cent. You can make up to three withdrawals without affecting that rate, but once you make a fourth withdrawal, the rate drops to 4.25 per cent. Note, also, that the minimum savings amount is £25,000. The Vida Bank Defined Access Issue 1 account offers interest at 4.63 per cent, as long as you make no more than four withdrawals across the year. After the fifth withdrawal, it drops to 2.5 per cent. Another interesting option is the Atom Bank Instant Saver Reward. With this account you'll earn interest at 4.75 per cent, but only in the months where you don't make a withdrawal. If you do make a withdrawal, your rate for that month drops to 3.0 per cent. Best fixed-term savings accounts Easy-access and limited-access accounts, such as those we've listed above, typically have variable interest rates, which can drop at any time. The advantage of a fixed-term savings account is that you can be sure you'll earn the advertised rate across the full period you sign up for. As most industry experts expect interest rates to fall over the coming year, the best deals for fixed-term savings accounts are currently for the shortest periods (e.g. one year). These include: Cynergy Bank 1 Year Fixed Rate Bond at 4.65 per cent Vida Bank 1 Year Fixed Rate Bond at 4.40 per cent Charter Savings Bank 1 Year Fixed Rate Bond at 4.31 per cent Nationwide 1 Year Fixed Rate Online Bond at 4.15 per cent Best notice savings accounts Several banks are currently offering more generous interest rates to people who plan to make withdrawals but won't need immediate access to their cash. The rates tend to get more generous the longer you're able to wait. For example, Charter Savings Bank offers 4.6 per cent interest for a 30-day notice account, 4.65 per cent for 60 days, and 4.70 per cent for 95 days. Oxbury, similarly, offers 4.65 per cent for 35 days or 4.85 per cent for 120 days. Those with £25,000 to save can access great rates with comparably short notice periods from Monument, such as 4.34 per cent interest for a seven-day notice account. Note, however, that notice savings accounts often track the BoE Base Rate. This could fall as soon as next month, as the next decision will be made on 8 May 2025. Best Cash ISAs With interest rates as high as they are, some savers may find that their annual interest will exceed the personal savings allowance, requiring some tax planning. Whether a Cash Isa is the most tax-efficient choice for you depends on what other income and investments you have, so consider this carefully. If you do opt for a Cash Isa, two strong contenders are the Tembo Cash Isa at 4.80 per cent interest and the Trading 212 Cash Isa, with a rate of 4.50 per cent - though readers at The Independent can still benefit from a promotional rate to earn 4.9 per cent including a 12-month bonus. When investing, your capital is at risk and you may get back less than invested. Past performance doesn't guarantee future results.
Yahoo
17-03-2025
- Business
- Yahoo
Major bank slashes rates again ahead of next RBA interest rates meeting: 'Measly'
ANZ has 'pulled the rug out' from underneath customers today by slashing its savings interest rates. The major bank already cut interest rates on its key savings account last month following the Reserve Bank of Australia (RBA) cash rate cut. But ANZ axed the 2.25 per cent introductory bonus on its popular Online Saver account on Monday, taking the total maximum rate down to just 1.15 per cent. This follows a 0.25 per cent cut on February 28 following the RBA's announcement. The Big Four bank has also cut its Progress Saver interest rate by 0.10 per cent, bringing the total bonus rate to 3.75 per cent. The rate reverts to just 0.01 per cent if conditions are not met. RELATED ANZ customer turned away over $2,400 cash deposit: 'Out of left field' Centrelink cash boost to hit accounts this week: 'Critical' Older Aussie with $40 million fortune offers controversial coffee advice to young people: 'Out of touch' Mozo money expert Rachel Wastell said the move was a 'clear signal' the bank was trying to push customers towards its digital ANZ Plus savings product, which still offers a 4.75 per cent bonus rate for customers who grow their balance by $100 or more each month. 'ANZ just pulled the rug out from underneath its savers by removing its intro rate to offer a measly 1.15 per cent per annum,' Wastell said. 'This is a far cry from what's available elsewhere, including the rate on offer from ANZ's digital brand ANZ Plus.' The other Big Four banks also lowered their savings rates following the RBA's decision, which can be a "double-edged sword" for Aussies. Commonwealth Bank cut its GoalSaver account by 0.25 per cent to 4.65 per cent and its NetBank Saver account by 0.20 per cent to 4.90 per cent. Westpac cut its Westpac Life and eSaver accounts by 0.25 per cent to 4.75 per cent, while NAB cut its Reward Saver and iSaver by 0.25 per cent to 4.75 per cent. Savings interest rates can vary 'dramatically' between banks and Wastell has urged Aussies to shop around. 'The gap between a 1.15 per cent and 4.75 per cent per annum savings rate can really add up, and those sticking with sub-par rates could be missing out on hundreds of dollars in potential interest,' she said. Mozo found someone with a $5,000 balance would be missing out on $185 interest over a year, while someone with a $10,000 balance would be forgoing an extra $369. Even better returns can be found outside of the Big Four banks. ING Savings Maximiser currently has a 5.40 per cent bonus rate for balances up to $100,000 with conditions attached, while Australian Unity has a 4.85 per cent unconditional rate for balances up to $250,000. 'Challenger banks, specialist banks and smaller regional lenders are leading the charge when it comes to deposit rates, and if you want to make the most of your hard-earned money, you shouldn't be settling for less,' Wastell in to access your portfolio
