End of the 5% savings deal: How 27 easy-access accounts have been cut or pulled after base rate move
- At least 27 easy-access deals have been cut or pulled since base rate cut
Last week the Bank of England bit the bullet and cut base rate from 5 per cent to 4.75 per cent.
And in the aftermath, big banks including Chase and Monzo have passed on the rate cut to savers through their easy-access deals.
Monzo has revealed it's cutting its easy-access rate to 3.6 per cent from 3.85 per cent later in the month.
Meanwhile Chase will cut its easy-access rate to 3.5 per cent from 3.75 per cent on 14 November.
A raft of providers have cut the rate on their savings accounts since the Bank of England cut the base rate to 4.75 per cent last week
Chip has cut its easy-access rate to 4.75 per cent from a market-leading 5 per cent - one of just a handful of accounts that was still paying 5 per cent.
This is Money analysis found at least 27 easy-access accounts have had their rates cut or been pulled from the market since the Bank of England cut the base rate was to 4.75 per cent.
Fixed-rate accounts have not fared any better than their easy-access counterparts, with top one-year and two-year fixed-rate bonds falling, according to Moneyfacts Compare.
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The rates scrutineer has warned that fixed savings rates, including savings accounts and Isas, have dropped to their lowest levels in more than a year.
The top one-year fix fell to 4.85 per cent which is now 0.21 percentage points higher than the top five-year fixed bond. The rate gap was 0.31 percentage points a month prior.
There are now no fixed bonds paying 5 per cent. Caitlyn Eastell, of Moneyfacts, said: 'It is unlikely that we will see them make a comeback.'
Savers who have a one-year fix maturing soon can expect 1.2 per cent lower returns than the market-leader for November 2023.
The best one-year bond still available pays 4.8 per cent from Atom Bank and can be opened with a deposit starting from £50, This is Money's savings tables show.
While Smartsave Bank is offering a two-year bond paying 4.61 per cent which can be opened with a minimum deposit of £10,000.
Longer-term fixed-rate bonds are paying 4.6 per cent over three years, such as Atom Bank, while Atom Bank's five year bond is paying 4.5 per cent.
Eastell said: 'Consumers would be wise to act with haste if they spot an attractive deal, as they may have a shorter shelf-life.'
You can still get 5% with an Isa... for now
The Isa market is the only remaining corner of the market where savers can find savings deals paying more than 5 per cent, with Moneybox and Trading 212 both offering 5.17 per cent on their easy-access cash Isas.
The top fixed-rate Isas pay less than the top fixed-rate bonds. Savers can get a one-year fixed-rate Isa paying 4.46 per cent from Kent Reliance and a two-year fixed-rate Isa from Shawbrook Bank paying 4.32 per cent.
James Blower, founder of website Savings Guru said: 'Easy-access Isas are being propped up by providers who are trying to acquire new customers so this market is slightly artificial.
'Expect it to take most of November before the easy-access Isa market settles down.
'There are less Isa providers from the newer banks, who move pricing quickly, so expect it to be a good two weeks before there is any real reaction to base rate being cut.'
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