Recent weeks have seen a flood of interest rate changes for new customers. Providers have closed competitive issues of accounts only to launch lower paying versions. But the wave of changes had only affected those looking to open new savings accounts - until recently.
This month, both M&S and Julian Hodge Bank announced plans to reduce the rates on some of their variable rate accounts for their existing customers, which raises the question, is this just the start of things to come?
M&S has announced plans to reduce its best buy variable rate Advantage ISA, currently paying 3% AER, to 2.75% AER from December. Julian Hodge Bank was in more of a rush. It has already cut the rates on its variable Extra High Interest Deposit Account (90 days’ notice account), dropping from a top rate of 3.15% to 3.00% AER.
Variable rates are indeed variable and that's the risk savers take. But why are banks and building society cutting savings rates now?
Only time will tell if more providers will follow M&S and Julian Hodge Banks’ lead, however providers don’t usually need much of an excuse to react to their peers, especially if it means increasing their margins!
But this is why we set up SavingsChampion.co.uk and in particular why registering with Rate Tracker is so important!