Barclays takes axe to savings rates

Jonbvn

http://www.timesonline.co.uk/tol/money/borrowing/article6406071.ece

Barclays has today cut rates on some savings accounts, while Nationwide has hiked its overdraft rates, even though Bank rate has been on hold for two months and is not expected to change this week.

Analysts said the moves were a sign banks and building societies are seeking to boost profit margins while interest rates remain at a record lows.

Barclays, which is one of the few banks that has not accepted taxpayers’ cash, has cut rates on its children’s savings accounts, Barclayplus and Barclays Children’s savings, by 0.25 percentage points.

The rate on £18,000 in its Cash Isa has also been reduced, from 0.31 per cent to 0.1 per cent.

jimbow25

Two products to highlight that people here may have, or may be considering, that have changed:

* Golden ISA now only 2.55% to new applicants, no 1% bonus. Existing account holders unaffected.
* Tax Haven ISA (last year's top pick) reduced from 2.08% to 1.83%, or 0.83% if it's been open more than 12 months.