According to analysts from Finder, three providers are set to cut interest rates.
These include Yorkshire Building Society, who will change rates across four accounts, Nationwide, who will change rates across 37 accounts, and NatWest.
Kate Steer, personal finance expert at Finder, said: “Savers shouldn’t settle for a worse deal out of a sense of loyalty to their current provider. With the average UK savings (£19,214), if you kept your savings pot with one of the new, lower rates, such as an account earning 1.25%, you’d end up with just £240 after a year. Meanwhile, a market-leading rate of 4.5% from Chase would mean £864 in interest, a significant difference of over £600.
“If you’ve got some of your ISA allowance to use before April, the ‘eToro by Moneyfarm’ Cash ISA is a very competitive option at 4.49% AER for the first 12 months, while both Plum and Moneybox have announced boosted rates of 4.36% and 4.39% respectively for new cash ISA customers.
“It’s widely expected that the base rate will be held tomorrow, which will be welcome news to those who’ve already seen their savings rates plummet. However, on top of the 3 providers cutting rates this month, 5 banks have announced further rate cuts in March, so now is the time to take action. Get in early with a savings spring clean, and your finances will thank you.”
