Savings update: find out which banks have cut their savings rates

16 August 2016

Banks and building societies have been busy cutting rates since the Bank of England cut base rate to 0.25% earlier this month.

On easy-access taxable deals French-owned RCI Bank Freedom account has cut its rate from 1.45% before tax (1.16% after tax) to 1.2% (0.96%).

It still offers the top rate but with this account you are covered by the European compensation scheme which gives €100,000 (£86,000) worth of cover if the bank goes bust. For more on this read our article How safe is your bank?

Shawbrook pays 1.1% (0.88%) after cutting its rate from 1.25% (1%) last week.


Top rates on the high street

On the high street the top rate is 1.16% (0.93%) from Virgin Money Defined Access as long as you make no more than three withdrawals a year.

Virgin Money’s new Manchester United Red Devils account pays 1.05% (0.84%) with no withdrawal restrictions.

Top fixed rate deals include 1.5% (1.2%) from United Trust Bank for one year. For two years, Shawbrook Bank 1.7% (1.36%).

On tax-free cash Isas new savers can earn 1.1% with Coventry Building Society easy-access account while the best one-year fixed rate deal comes from Shawbrook Bank at 1.3%. For two years Paragon Bank pays 1.35%.

This article was originally written for our sister publication, Money Observer.

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