Dozens of banks slash easy-access rates – what you need to do NOW to get the best savings deal

Savers who opened a top easy-access account or Isa this year are being urged to act now as savings rates plummet in the aftermath of the Bank of England rate cut last week.

Less than a week since the base rate was cut to 4 per cent, more than 20 savings providers have slashed easy-access savings accounts and Isas, according to rate scrutineer Moneyfacts Compare.

Those saving with big names including Chip, Plum, Zopa, Atom Bank, Trading 212 and Monument – providers which had some of the most competitive rates on the market – have already seen rates drop either on the day of the base rate announcement or the following day, analysis by price comparison website Finder found.

Monzo has also cut its easy-access saver 3.25 per cent to 3 per cent. 

Tomorrow, Chase’s boosted saver, one of the highest rates on the market, will also drop from 5 per cent to 4.75 per cent. 

On the same day, Co-op Bank will reduce its Base Rate Tracker savings accounts by 0.25 per cent.

Other cuts have been scheduled for later in the month – on 22 August, Moneybox will reduce its standard cash Isa rate from 3.75 per cent to 3.5 per cent, while Aldermore will drop its savings account and Isa by an even bigger margin – going from 3.55 per cent to 3.15 per cent.

Warning: Over 20 easy-access providers have slashed savings rates in the wake of the Bank of England base rate cut

> Read more: Our pick of the best stocks and shares Isas 

Customers with savings in leading high street banks should also take action in the coming weeks. 

NatWest and RBS customers will see rates on multiple accounts drop on 28 August, with Digital Regular Savers and Flexible Savers at both banks falling from 1.15 per cent to 1.06 per cent.

Meanwhile, those with Santander Good for Life Isa or Rate for Life account will both have interest rates lowered by 0.25 per cent from 2 September, with the former going from 4.25 per cent to 4 per cent and the latter going from 4.5 per cent to 4.25 per cent (on balances over £1,000).

It is made worse by the fact that inflation is predicted to rise to 4 per cent, meaning more savers could see their pots eroded in real terms, as more savings rate cuts are expected over the next few weeks.

As it stands, less than a third of standard savings accounts, including fixed-rate bonds and Isas, pay more than 4 per cent and less than 10 per cent of all accounts pay a variable rate of over 4 per cent.

How to get the best savings deal

It can be a minefield for savers trying to bag a top easy access deal that doesn’t come with any tricks or catches.

Savers getting the top rates will have to tread carefully if they intend to dip in and out of their savings on a regular basis.

They need to look closely through the ‘best buy’ easy access saving accounts to weed out restrictive terms and conditions.

For a true easy access deal, you should look for the account that has the highest rate but with no bonus period, no restrictions on withdrawals and no requirement to take out an additional product to qualify for the account. 

The best easy-access account with no strings attached comes from Kent Reliance and pays 4.41 per cent. It is followed by Hodge Bank wich pays 4.4 per cent. 

There are higher rates on offer for example Cahoot’s Sunny Day saver which pays 5 per cent, but you can only stash up to £3,000 in this account to get the rate.

Rachel Springall, financial expert at Moneyfacts Compare says: ‘It is essential consumers stay in tune with market movements and switch to ensure they are not getting a raw deal. Over the past week the Moneyfacts Average Savings Rate has dropped from 3.5 per cent to 3.47 per cent.’