Barclays is making several changes to popular savings accounts
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Barclays is slashing interest rates on several of its popular saving accounts. The interest rate on the Barclays Everyday Saver will be reduced from 1.51% to 1.26% on balances up to £10,000 - but for those who have more than £10,000 saved, the rate is actually going up from 1.16% to 1.26%. The interest rate on its Barclays Rainy Day Saver is being cut from 5.12% to 4.87% on balances up to £5,000. For balances over £5,000, the rate stays the same at 1.16%.
Barclays isn't the only bank to be cutting its savings rates. Chase offers an interest rate that tracks 1.25% below the Bank of England base rate, which is now 4.75% - but from February 19, this will track 1.5% below the Bank of England base rate. It means savers who don't have a boosted saving rate with Chase will see the standard interest rate go down from 3.5% to 3.25%.
New customers to Chase currently get an extra 1.5% bonus on their savings for six months only. If you took out a Chase account before December 9, 2024, the bonus on offer was 1% - and this will end on January 16. It is worth checking what savings rate you're currently getting, as there are plenty of accounts out there that still pay better than the rate of inflation.
First of all, you need to find the right type of account to suit your needs. Easy-access savings accounts give you access to your savings, as you can normally make withdrawals whenever you want - although some providers do limit how many withdrawals you can make in a set period of time.
If you don't need access to your cash, there are notice and fixed rate savings accounts, which lock your money away at a set right for a specified period of time. At the moment, cash ISAs currently pay the best rates - but keep in mind you can only deposit £20,000 each tax year into an ISA. Any interest you make from an ISA account is free from tax.
