Why loyal savers are at risk of losing out on new top rates from banks and building societies
- Rates are often only available to new savers and not existing customers
- Skipton Building Society’s top 0.6pc rate is only available to those opening its Triple Access Saver now
- Tesco pays new savers 0.5pc on its Internet Saver but loyal customers get 0.1pc
Loyal savers are at risk of missing out on new top rates
Loyal savers are at risk of missing out on new top rates. Many banks and building societies have launched better-paying accounts over the summer.
But the rates are often only available to new savers, leaving existing customers still earning a pittance. Skipton Building Society’s top 0.6pc rate is only available to those opening its Triple Access Saver now. Existing customers who hold money in its easy-access accounts earn just 0.25pc.
Tesco pays new savers 0.5pc on its Internet Saver. Loyal customers earn much less: 0.1pc. Paragon pays 0.46 pc to new savers on its Limited Edition Easy Access account. But if you are in its similarly named Easy Access Account the rate is 0.25pc.
Rachel Springall, finance expert at Moneyfacts, says: ‘Staying loyal does not mean getting the best deal. It’s vital savers check their rate regularly.’ Elsewhere, many providers, are still slashing rates for savers. HSBC has announced a tranche of cuts from next month. Its Loyalty Cash Isa will fall from 0.2pc to 0.05pc, and its Help To Buy Isa from 1.74pc to 0.75pc.
HSBC’s Cash e-Isa rate will also drop from 0.1pc to 0.01pc, while its Variable Rate Cash Isa hits the same low in November. Other rate cuts have come from Britannia, part of Co-op Bank. Its easy access accounts are down to 0.03 pc from 0.06 pc.
Co-op Bank itself cut rates from 0.09pc to 0.03pc, while Halifax Isa Saver Variable has also fallen from 0.05pc to 0.01pc.
And last week Metro Bank halved the rate on its Instant Access Savings account to 0.05pc. Its Instant Access Cash Isa went down from 0.15pc to 0.05pc. But there is some good news for savers as certain firms begin to fight harder for their cash.
Coventry BS led the way on rate rises by offering 0.55 pc on its Limited Access Saver (Online). But you are restricted in the number of withdrawals allowed.
Investec has also raised its Online Flexi Saver rate to 0.58pc with no withdrawal restrictions. And Cynergy Bank is now offering 0.6pc, although this includes a 12-month bonus of 0.3pc for the first year. And Tandem Bank topped them all last week with a 0.65pc deal. Shorter-term fixed-rate bonds have also broken through the 1 pc barrier, with Shawbrook Bank raising its one-year bond rate to 1.13pc last Friday.
This was swiftly followed by OakNorth upping its account to 1.23 pc and DF Capital to 1.3pc yesterday. James Blower, founder of consultancy The Savings Guru, says: ‘The good news for savers is that there’s so many banks now trying to attract savings.’