\n Barclays cutting interest rate on two savings accounts – here are three alternatives\n <\/p>\n
Barclays is cutting the interest rate on two of its popular savings accounts on Friday.\u00a0<\/p>\n
The bank is reducing the rate on its Reward Saver from 2.25% AER to 2.1% AER, while its Blue Rewards Saver, which comes with a \u00a35 monthly fee, will drop from 2.91% to 2.75%.\u00a0<\/p>\n
The interest rate applies to the accounts when no withdrawals are made in a given month, otherwise a lower interest rate of 0.6% AER applies.\u00a0<\/p>\n
Several banks have been cutting interest rates in recent weeks, after the Bank of England reduced its base rate from 4.25% to 4%.\u00a0<\/p>\n
While this is good news for borrowers, for savers it means a dip in the amount they can earn on their stashed away cash.\u00a0<\/p>\n
If you have one of the latest Barclays accounts to see a cut, here’s what you could do…\u00a0<\/p>\n
Savings expert Anna Bowes, from The Private Office, says the rates offered by the Barclays accounts are already “highly uncompetitive” and the reduction makes them worse.\u00a0<\/p>\n
“There is no need to wait until the rate cut to find a better paying account. The rates currently on offer can easily be beaten – and with no restriction on the number of withdrawals,” she says.<\/p>\n
The best paying easy access account available is with Chase, though this is only available to new Chase customers, joining since 9 June.\u00a0<\/p>\n
The rate is 4.75% AER – considerably more than the rates offered by Barclays both before and after the new rates are applied.\u00a0<\/p>\n
For those who do not want to open a new current account, and do not want restricted access to their cash, Bowes says Cahoot’s Simple Saver is paying more.\u00a0<\/p>\n
It is paying 4.4% AER, but after 12 months your money will be moved to a cahoot Savings Account paying a far lower rate (currently 1% AER), she warns.\u00a0<\/p>\n
Santander is paying 6% AER on its Edge Saver account, but only on balances of up to \u00a34,000, and this rate includes a 2% variable rate bonus for 12 months.\u00a0<\/p>\n
“More importantly, you have to be an Edge Current Account customer, which comes with a \u00a33 monthly fee to be aware of,” Bowes says.<\/p>\n","protected":false},"excerpt":{"rendered":"Barclays cutting interest rate on two savings accounts – here are three alternatives Barclays is cutting the interest…\n","protected":false},"author":2,"featured_media":126647,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,4174,4175,56,54,55],"class_list":["post-126646","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-personal-finance","tag-personalfinance","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/126646","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=126646"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/126646\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/126647"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=126646"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=126646"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=126646"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}