Everyone who has a decent chunk of change in their savings account has been issued a warning – as several banks have begun cutting interest rates, costing you money.
The news that the Bank of England is changing its base rate from 5.25 to 5 percent has led some banks to immediately drop the amount of interest they pay out to savers.
The Bank of England announced it was cutting interest rates due to inflation being brought under control. Inflation, down from peaks of about 11 percent, now sits at 2 percent, meaning average prices are only increasing by 2 percent.
Several banks tie their savings rate to the Bank of England base rate, which has left savers with instant cuts to their rates.
Chase has reduced its easy access saving account rate from 4.1 percent to 3.85, effective from August 8.
Someone with £10,000 in the account would earn £25 less interest over the next year due to this change.
Chip has cut its rate from 5.1 percent to 4.84 percent for its variable rate cash ISA, and cut its easy access savings from 4.84 to 4.58 percent.
The Co-Op bank has cut rates by 0.25 percentage points across all of its accounts. For those with a balance of £10,000 or more, it means your rate is going from 2.75 percent to 2.50 percent.
Cynergy Bank has cut its rate from 4.94 to 4.8 percent while Shawbrook has cut from 4.60 to 4.36 percent, while Skipton Building Society had cut from 5.25 to 5 percent on its Online Tracker balances.
