PPI Claim News - 30/7/2010

Bank Claims: Northern Rock cuts Isa rates

Savers have been dealt another blow after Northern Rock confirmed it has cut the rates on its Isas.

The firm has announced that returns on its one-year, three-year and five-year Isas will all be reduced by up to 0.25 per cent.

Northern Rock's three-year Isa has suffered the biggest hit after rates were cut by 0.25 per cent to 3.5 per cent.

Its five-year policy now offers four per cent compared to 4.2 per cent previously, while the one-year fixed Isa has been reduced from 2.85 per cent to 2.8 per cent.

Dan Hyde, savings correspondent for his thisismoney.co.uk, claimed the reduction in rates will be more noticeable with the current low base rate.

He told the website: "Any cut in savings rates is a bad cut in our book - particularly with the Bank of England's base rate stagnant at 0.5 per cent.

"It all adds up. With rates looking like they'll stay low for some time yet, make sure you do your research."

It follows the decision by National Savings and Investments (NS&I) to withdraw its inflation-beating savings certificates following high levels of demand. 

Posted by Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

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