Savers suffer after 72 hours of rate cutting

SaveRS have been dealt harsh cuts to easy access savings and cash Isas.

Over the past 72 hours, halifax has axed its rates by as much as 0.75 percentage points for savers opening an account. and its Online Saver rate is down, at 1.88 pc after tax (2.05 pc before) for sums up to £20,000 for new savers. Last week, it was paying 2.24 pc ( 2.8 pc) to new savers whatever their balance.

The rate on larger balances is also down to 1.8 pc (2.25 pc) on sums between £20,000 and £50,000 and 1.88 pc (2.35 pc) from £50,000.

Savers already in the account have not been affected by the cut.

Once you have been in it for a year, the rate plummets to 0.08 pc (0.1 pc).

The bank has also ratcheted down the rate it pays to savers looking to earn tax-free interest in a cash Isa.

Its Isa Saver variable is down by 0.4 percentage points to 2 pc while Isa Saver Online pays 2.5 pc to new savers, down from 2.6 pc. Both rates include a bonus paid for the first year.

The top rate on easy access internet-based accounts comes from aa Savings, where the deposit-taker is halifax at 2.24 pc (2.8 pc) for the first 12 months. The rate drops to 0.4 pc (0.5 pc) once you have been in the account a year. On branch-based accounts, the best deal comes from virgin Money at 2 pc (2.5 pc), where the rate is not boosted by a bonus.

You can earn a slightly higher 2.12 pc (2.65 pc) with Leeds BS, including a bonus of 0.48 (0.6) percentage points until September 30 next year. But you can’t move money you already have with the society into this account.