Customers who hold a Bank of Scotland Vantage account will see their top rate of interest cut from June 2017.
At present, Vantage users can earn 3% interest from their current account on balances between £3,000 and £5,000. Those with between £1,000 and £3,000 in their account earn 2% interest and those with less than £1,000 see a return of 1.5%. See the table below for a full breakdown.
From June 2017 this will change to a flat 2% interest rate being paid on all balances up to £5,000. The move will affect all new and existing customers with the Classic Vantage, Silver Vantage, Gold Vantage, Platinum Vantage and Premier Vantage accounts.
Many banks – including Santander, Lloyds Bank and TSB - have cut the level of interest they pay on their flagship current accounts since the Bank of England base rate was lowered to 0.25% last year.
Bank of Scotland has now become the latest provider to follow suit. It will write to customers shortly to confirm the exact date in June when interest rates will change.
The bank says that it is making no changes to the account’s eligibility criteria. Customers must continue to pay at least £1,000 into their account, stay in credit, and pay out at least two different direct debits each calendar month.
A Bank of Scotland spokesperson adds: “From June 2017 we are changing the tiered rates on Bank of Scotland Vantage to a simplified single interest rate of 2% AER on credit balances between £1 and £5,000.
“We will be writing to customers over the coming weeks, providing at least two months’ notice before the change takes effect. This change follows a review of our current accounts, taking into consideration changing market conditions. We believe that Vantage remains both attractive to customers and competitive in the market.”
Click the table below to enlarge: