Personal finance website Finder is urging savers to reassess their banking arrangements as four major high street banks prepare to reduce savings rates in the next fortnight. The changes follow the Bank of England's decision to lower the base rate from 4 per cent to 3.75 per cent in December.
From Wednesday, January 14, Santander will cut rates on its 'Good for Life ISA' and 'Rate for Life' accounts by 0.25 per cent. On January 19, NatWest and RBS will reduce rates on selected accounts by up to 0.25 per cent. Barclays will follow on January 28, 2026, decreasing the rate on its 'Reward Saver' from 2.10 per cent to 1.85 per cent and 'Blue Rewards Saver' from 2.75 per cent to 2.51 per cent.
Kate Steere, a personal finance expert at Finder, highlighted the disparity in rates: "The gap between the best and worst savings rates on the market is striking. If you were earning the new NatWest or RBS rate of 1.00 per cent AER with the amount we found the average Brit has saved (£16,067), you'd get just £160 in interest over the course of the year." She added that a top rate like Chase's 4.5 per cent would generate around £720 on the same amount.
Steere advised savers to act now: "Analysts aren't predicting further changes to the base rate in the near future, so now is the time to give your savings a new year reset and find yourself a rewarding rate." She also noted that the Cash ISA limit will be cut to £12,000 in the next tax year, encouraging savers to consider fixed-rate ISAs, such as Investec's 4.12 per cent AER for a one-year fix.
