Banks already ditching best savings accounts ahead of expected cut to base rate of interest

BANKS are already ditching the best savings accounts ahead of an expected cut to the base rate on Thursday.

Over the past month, 13 of the best buy deals were withdrawn from the market and not replaced, a report from Moneyfacts said.

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Market-leading deals with savings rates as high as 2.55 per cent — such as a bond from FirstSave — have gone.

Saga has also ditched a popular ISA with a rate of 1.8 per cent, the best for that type of account.

Later this week, Bank of England boss Mark Carney is expected to make the first cut to the base rate since 2009, from 0.5 per cent to 0.25 per cent.

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Rachel Springall, from Moneyfacts.co.uk, said: “Savers are facing never-ending cuts to rates on all types of savings accounts.

“Decent savings deals are facing slaughter.

“Repetitive cuts are just not practical for all providers to continue, so the only option is to withdraw the best deals entirely and not replace them.”

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In contrast, borrowers get better and better deals.

The average interest rate on a two-year fixed rate mortgage dropped to a new low of 2.48 per cent from 2.68 per cent a year ago.