Interest Rates on Savings Drop

Written by Karen Bryan

uk notesToday, 18 January 2015, I have observed that several UK savings account have dropped their rates of interest since last week.

A week ago, I opened an United Trust Bank Three Year Tracker Bond which paid 2.6%, tracking at 2.1% above the Bank of England Base Rate (currently 0.5%), That rate has now dropped to 2.4%. I opened my United Bank tracker bond just in time to secure the higher rate.

Tesco Bank were paying a best buy table topping 1.75% on their one year fixed rate Cash ISA. That rate has dropped to 1.31%.

The rate of interest paid on the Nationwide Flexclusive ISA has dropped from 1.5% to 1.3%.

This isn’t good news as we approach the ISA season in early April. when savers may be looking to open an ISA before the end of the current tax year on 5 April 2016 and/or open a new ISA for the new tax year.