Current Account Interest Rates Slashed By UK Lenders

Wed, 12 Nov 2008

Some of the UK’s largest high street lenders have reduced their in-credit interest rates on current accounts in the last week following the Bank of England’s surprising 1.5 per cent base rate cut.

Six banks and building societies have slashed rates including Lloyds TSB which has cut interest on its Premier Plus, Platinum Plus, Gold Plus and Classic Plus by 0.48 per cent to 3.45 per cent on accounts from £1 to £2,500.

Nationwide has cut the rate on its Flex Account by 0.5 per cent for customers funding £1,500 and £1,000 a month to 3.00 per cent and 1.50 per cent respectively.

The Halifax Asset Reserve Cheque Account has dropped by 0.50 per cent to 1.60 per cent, while Intelligent Finance has knocked 0.25 per cent of its rate to 0.99 per cent.

Customers with Coventry Building Society and Norwich and Peterborough Building Society have also seen a 0.5 per cent reduction in interest on a number of accounts .

Louise Bond, personal finance manager at uSwitch, commented: "This revenue-boosting move by six providers to reduce in-credit current account interest rates conveniently came in a week when headlines were focused on mortgage and savings rates ."

"Those cynics among us could be forgiven for thinking that, whilst attention was diverted towards the base rate decision, providers were hoping that these rate reductions would slip unnoticed under the radar," she added.
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