Savings account customers have seen rates fall with TSB becoming the latest bank to announce cuts, following similar moves from Halifax, Nationwide and Yorkshire Building Society.
Savers interest rates on easy-access accounts now typically sit at between 0.15% and 0.25%. TSB’s new rate, starting in September, will be 0.15% for its Easy Saver, eSavings, Advantage Saver, Flexible Savings and Passbook Saver.
Craig Bundell, Director of Savings at TSB, said: “As part of our regular review of savings interest rates and the market, we are reducing rates on our variable savings accounts. We’re informing customers of our new rates and helping them find the most appropriate account for their needs.”
Halifax cut the rate on its ISA Saver Variable to 0.2%. That means that those investing the maximum of £20,000 will receive just £40 in interest.
Nationwide, the UK’s largest building society, launched new accounts earlier in June. Existing savers using its Instant ISA Saver will get 0.3% on balances up to £10,000 and 0.4% on the full £20,000.
Commentators have suggested the cuts of banks look to offer cheaper mortgages. At the start of 2019, borrowers with a 5% deposit could get a two-year fixed-rate deal at 3.09%. This has since fallen to 2.59%.