Feeling Under Attack from All Sides

Written by Karen Bryan

fistToday, I read about more cuts in the interest rates paid on high interest current accounts which I hold.

Following in the wake of the halving of the 3% rate of interest paid to qualifying holders of the Santander 123 Current Account, the Lloyds Banking Group has decided to take the axe to two of their current accounts.

The 4% interest rate paid on balances between £4,000 to £5,000 in the Lloyds Club Current Account will drop to 2% from 8 January 2017.

The £5 month reward paid to qualifying holders of the Halifax Reward Current Account will be cut to £3, from 1 February 2017.

I have the feeling that the rate of inflation in the UK is going to increase, partly due to the drop in the value of the British pound. This will push up my living expenses, at a time when my savings are earning a lower rate of interest.

As a result of a strike by Greek air traffic controllers, I’m spending an additional week on the island of Corfu. While that may sound good, the weather is awful, there have been power cuts, plus I am £666 out of pocket.

While easyJet changed my flight to a later date free of charge, I had to pay upfront to stay on in the hotel. I should be able to reclaim this money from easyJet. But I don’t know how if easyJet will agree that my additional expenses are reasonable ,or how quickly I will be reimbursed.

No wonder I feel under attack from all quarters.

Update 12 October 2016 – This morning I read that the rate of interest paid on the TSB Classic Current Account will be cut from 5% to 3%. As if that weren’t bad enough, the maximum balance on which interest is paid will be reduced from £2,000 to £1,500.