Money experts say now is the best time to shop around for better deals
NatWest is among banks slashing rates.
A number of major banks are cutting interest rates in July, in a blow to savers.
Customers with these banks are being advised to look around for better deals, with some of the rates incredibly low compared with other options on the market.
Eight accounts at NatWest and RBS will be impacted on July 15, including four instant access savings products, with both banks lowering the rate on these offerings from 1.25% to 1.15%.
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Other accounts affected include children’s savings accounts, where the rates will be dropping from 2.25% to 2.05%.
Rates on two HSBC accounts – Flexible Saver and Online Bonus Saver – are going from 1.35% to 1.3% on July 21.
Meanwhile, four different Co-op Bank savings rates will be slashed on July 23, with the Online Saver and Online Cash ISA dropping from 2.34% to 2.12%, and the cash ISA and Smart Saver dropping from 1.62% to 1.53%.
These rates are very low and offer hardly any interest growth compared with others on the market.
Kate Steere, personal finance expert at Finder, said: “If you were earning the new NatWest or RBS rate of 1.15% AER with the amount we found the average Brit has saved (£16,067), you’d get just £185 in interest over the course of a year.
“There are much more competitive rates available.
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“For example, if you opened a Plum Cash ISA with a rate of 4.98% AER (including a 12-month 1.69% bonus) using the £16k, you could earn up to just over £800 in interest over the year (dependent on any rate changes) – a potential £600 boost to your savings.”
Kate urged savers to act quickly to secure the best rates.
She continued: “Lots of analysts are predicting a further cut to the base rate in August.
“With the next meeting less than a month away, it’s essential to act fast if you want to get the most from your savings.
“Variable rates are subject to change so if you are still looking to use your 2025/26 ISA allowance – and you can afford to lock your cash away – now is also a great time to seek out a good deal on a fixed-rate ISA.”