Overview
- NatWest has notified customers it will reduce rates on several products on 19 January, including Digital Regular Saver from 5.50% to 5.25%, Flexible Saver £1–£24,999 from 1.06% to 1%, and Savings Builder £1–£10,000 from 1.50% to 1.25%, with further trims to Help to Buy ISA and youth accounts.
- The Bank of England’s Monetary Policy Committee cut the base rate from 4% to 3.75% in December, citing easing inflation and signalling that any further reductions are a closer call.
- Which?, citing Moneyfacts, warns that £10,000 in a typical high-street instant-access account at 1.15% AER earns about £115 in a year versus roughly £448 at a top 4.48% AER account, a gap of more than £300.
- Consumer advisers urge savers to check Financial Services Compensation Scheme coverage up to £120,000, track fixed-term maturities and temporary bonus rates, and switch promptly when introductory offers expire.
- Experts highlight tax planning as key, noting personal savings allowances (£1,000 for basic-rate taxpayers, £500 for higher-rate, none for additional-rate) and an expected 2027 change reducing the cash ISA holding limit for under‑65s from £20,000 to £12,000.