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Savings accounts 'suffering rate cuts'

Banks are slashing their savings rates, the Daily Mail reports.

An investigation into various savings accounts offered on the UK high street has revealed that, although interest rates stand at the same level as they did a year ago, some accounts offer almost 0.5 per cent less.

The situation is worse in branch-based, rather than online, savings accounts - such as Halifax's 60 Day Gold, which has reduced its after tax rate from 2.6 per cent to 2.2 per cent.

What's more, in common with many other accounts, a withdrawal penalty is levied if the customer clears their account without giving notice.

Savings from Barclays and Abbey were also criticised by the newspaper for cutting their rates.

Consumers were advised to check best buy tables and to shop around for the best deal - looking out especially for savings accounts which had a "solid" link to the base interest rate set by the Bank of England.

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