Best Savings Rates on the Market

With the Bank of England slashing interest rates, savers are being squeezed more than ever. We seek out the few accounts available which are paying a positive interest rate

Emma Wall 5 September, 2016 | 4:20PM
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Savers face fresh challenges in the search for a decent rate of income as high street banks pass on the Bank of England rate cut straight to their customers. When Bank Governor Mark Carney announced the Monetary Policy Committee had voted for a cut in the Bank’s base rate to 0.25% from 0.5% he insisted that banks pass on the cut to customers. Carney may have been talking about borrowers benefitting from cheaper loans, but the reality is savers will end up penalised.

The MPC is widely expected to cut rates further next week following its September meeting, from 0.25% to 0.1%. Many banks have already slashed their savings rates in anticipation, with the latest cuts announced from Natwest and Royal Bank of Scotland. The Natwest Instant Saver is dropping from its rate of interest 0.25% to 0.01% with effect from October 31, and Natwest’s Cash ISA will halve its rate of interest from 1% to 0.5% on the same date. RBS, which owns Natwest, offers similarly named accounts and is dropping its rates in line.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Emma Wall  is former Senior International Editor for Morningstar