The Daily Telegraph - Saturday - Money
And Help to Buy rates are falling, too
Halifax has cut the rate on its leading Help to Buy Isa from 2.5pc to 2pc. Effective from August 23, any new customers will receive the lower rate. The change does not affect existing customers.
It is the second time that Halifax has cut the rate on its Help to Buy Isa since launching it at the end of 2015 – when it offered a mouthwatering 4pc.
In May, it lowered the rate to 2.5pc, stating that it had received “unprecedented” demand for the account.
The latest change means that it leaves Virgin Money alone at the top of the best-buy table, offering 2.5pc.
Earlier in the year came a spate of competitive pricing as banks jostled for savers’ Help to Buy funds. In March, for example, Santander upped its rate to match Halifax’s then 4pc deal. Since then, however, Santander has chopped it back to 2pc.
Lloyds, part of the same group as Halifax, has also reduced its Help to Buy Isa rate from 2pc to 1.5pc.
The Bank of England’s decision to cut Bank Rate from 0.5pc to 0.25pc earlier this month continues to ripple out across savings accounts of all types.
Changes made in the past few days to popular variable-rate accounts include Saga’s Telephone Saver account, where the rate drops from 1pc to 0.75pc, and the Post Office’s Premier Cash Isa, where the rate drops from 0.95pc to 0.7pc. The above cuts applied from Tuesday.
Fixed-rate bonds are also seeing a swathe of reductions for new depositors prepared to tie up their cash. Bank of Cyprus, traditionally one of the best payers, trimmed its one-year rate from 1.45pc to 1.3pc. Shawbrook, another reliable constituent of the best-buy tables, also reduced its rate from 1.4pc to 1.3pc.