The increase in the number of providers simplifying their savings ranges will be a relief to some but a disappointment to many. This year sees heavyweights Lloyds and Halifax joining the likes of Barclays, Santander and NatWest in reducing the number of ‘legacy’ savings accounts.
Since 2013, 13 providers have simplified their savings range and a massive 711 accounts have been reduced to just 114.
Although these providers should be commended for reducing their vast range of accounts, cutting rates in the process seems a testament to the shocking state of the current savings market.
The positive news is that there have been twice as many rates increased vs those cuts and the average increase is 0.58% compared to the average cut of 0.51%.
Thousands of existing savings accounts have been reduced in recent years and now, under the guise of simplification, more accounts are being moved over to lower paying versions. Although many accounts have also seen an increase in the rate, or even no change at all, those savers that are disadvantaged by the changes are unlikely to be fans of the simplification process.
2015 has kicked off as 2014 ended, with an increasing number of providers simplifying their range. So far this year 204 savings accounts have or will be reduced to just 29, although Halifax and Lloyds are keeping the exact date of their changes a closely guarded secret.