Our £30k nest egg will earn 16p a day!

LOYAL saver Richard Martin will soon earn just 16p a day on his £30,000 nest egg when Lloyds cuts the rate on his Isa to 0.2 pc.

The retired IT manager, who lives in Portsmouth with his wife Elizabeth, first opened a current account with Britain’s biggest bank in 1966 when he turned 21.

He is now 74, and the bank has written to say that from Friday, the rate on his instant cash Isa will be cut from 0.35 pc to just 0.2 pc — around £60.06 a year, or 16p a day.

Richard says: ‘The idea of a 0.2 pc interest rate is laughable.

‘Lloyds does it because it knows it can get away with it, it’s not like a lot of the big banks are offering competitive rates for savers.’

The couple, who have two children, opted for the instant cash Isa because they wanted to be able to access their cash in case they needed it for emergencies such as broken boilers or car repairs.

Richard has considered switching, but dreads the application process for a new account. He says: ‘I would move my money to another bank, but I know it will be complicated and require dozens of forms.

‘Then there are hidden clauses and charges.’

The pensioner says the major banks were generous to loan and mortgage customers, but at the expense of savers. He says: ‘They know people like me just want to avoid the hassle of switching when it is such a complicated process.’

A Lloyds spokesman says: ‘We regularly review our savings rates and make changes when appropriate. We encourage customers to regularly review their savings and make it easy for them to switch to ensure their account is right for them.’