Nearly 40 UK banks and building societies have moved to slash their savings rates following the Bank of England's decision to lower the base rate to 4.5 per cent last week.
With the consumer price index (CPI) rate of inflation easing, the central bank's Monetary Policy Committee (MPC) has voted to bring down the cost of borrowing but this is having an impact on savers.
Chase bank has announced it will reduce its saver account rates from 3.45 per cent to 2.96 per cent between February 13 and February 19.
Barclays is also implementing cuts, with its Everyday Saver account rate falling from 1.50 per cent to 1.25 per cent on balances up to £10,000.
The bank's Rainy Day Saver account will see rates drop from five per cent to 4.76 per cent on balances below £5,000.
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The Bank of England's base rate cut is impacting savings accounts
GETTYTim Hogg, the director at consumer group Fairer Finance, said banks were "bound to pass" BoE rate cuts on to consumers.
"This can leave a bitter taste in the mouths of consumers who feel they didn't benefit as quickly when base rates rose but, ultimately, it's how the banking sector works," he explained.
Coventry Building Society currently leads the best-buy tables for easy access savings accounts with 4.85 per cent, according to Moneyfacts.
Cahoot follows closely behind, offering 4.75 per cent on its easy access account.
Savers have benen taking advantage of soaring interest rates
GETTYFairer Finance has launched a new ratings system to tackle "bait and switch" tactics in savings accounts.
The system provides weekly star ratings for easy access accounts based on their 24-month average rates.
Hogg warned that some providers temporarily increase rates to top best-buy tables and attract customers before reducing them, "relying on the fact that many customers won't switch [again] after that."
Barclays Rainy Day Saver and Ford Money's Flexible Saver accounts currently lead the ratings, offering rates "consistently close" to the Bank of England's.
In contrast to savers, homebuyers have received more positive news, with both Santander and Barclays now offering mortgages below four per cent for the first time since November.
Homeowners and prospective property buyers have been saddled with hiked repayment rates in recent years due to the Bank of England's decision-making.
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The central bank has made multiple changes to the base rate CHAT GPT
These sub-four per cent deals are available for mortgages with loan-to-values of 60 per cent.
However, experts note that fixed mortgage rates don't track base rates as closely as savings products, being influenced by other factors such as swap rates.
Average two-year fixed residential mortgage rates have remained around 5.5 per cent since early January.
The Bank of England's next MPC meeting to discuss the base rate is scheduled to take place on March 20.
