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30 March 2006
A financial information provider has warned savers about being complacent when it comes to rates.
Yet rate cuts in savings products are becoming more widespread, warns Moneyfacts.co.uk, with seven market-leading providers announcing rate cuts recently, in the wake of 25 providers who cut their rates in 2005.
If the base rate falls later this year in line with predictions, warns the company, providers of savings products will probably cut their rates further.
"With over a third of these providers cutting rates across the board, and some imposing rate reductions as large as 0.45 per cent, consumers would have almost certainly noticed a significant change to their interest returns, especially with average instant access rates around two to three per cent," commented Rachel Thrussel, head of savings at Moneyfacts.co.uk.
"The recently published financial reports of the 'big four' suggest falling retail profits within the UK, so are these rate reductions another means to boost the bottom line?"
Isas have also been affected by the cuts, says the company, with several major cash Isa providers having cut their rates in the past week, despite the April 6th deadline.
Customers should keep their eye on their savings and review their savings products on a regular basis, as the market leading rate may not stay that way for long, advises the company.
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