Savings account interest rates follow full cut
One month on from the Bank of England's base rate cut, many savings account providers have slashed their interest rates by the full amount, according to Moneyfacts.co.uk.
The price comparison site has compiled data which shows that 77 per cent of savings account providers have announced cuts in their savings rates with "the majority" reducing their rates by the full one per cent.Moneyfacts.co.uk found that the average savings rate on a no-notice account is now just 1.48 per cent, with 38 per cent of the accounts paying a rate of one per cent or less.
Michelle Slade, analyst at Moneyfacts.co.uk, said: "Moneyfacts.co.uk has been recording savings rates since 1988 and if base rate is cut further this week as predicted we are likely to see the average rate drop to the lowest level ever seen."
Earlier today Saga, which specialises in financial products for the over-50s, said that the Conservatives' latest tax proposals would help the older generation of savers.
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