Revealed: All savings rates cut since base rate cut, including Chip and Zopa

By Liam On Aug 7, 2024

The Bank of England cut the base rate to 5% last week
A falling base rate usually means that savings interest rates will also fall
Since the base rate cut, interest rates on at least 41 accounts have been reduced or withdrawn

By Helen Kirrane

Updated: 11:31 EDT, August 7, 2024

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Last week the Bank of England finally took the plunge and cut the base rate from 5.25 percent to 5 percent.

It follows seven consecutive occasions on which the central bank voted to keep rates on hold, followed by 14 consecutive base rate hikes since December 2021.

Interest rate cuts are bad news for savers, as banks are lowering interest rates on savings accounts.

Analysis by This is Money has revealed that at least 41 savings accounts have already had their interest rates cut, including low-interest savings accounts, fixed-rate savings accounts, Isas and Lifetime Isas.

In the mix: Interest rates on some savings accounts have already been cut after the Bank of England cut the base rate to 5%

Chip* 5.1% easy access cash Isa

Chip’s Best Buy Easy Access Cash Isa* paying 5.1 percent was one of the casualties of the Bank of England’s base rate cut.

The variable rate follows the base rate of 0.6 percent. This means that if the base rate goes up or down, Chip’s rate goes up or down proportionally.

That is exactly what happened yesterday: Chips yield has now fallen from 5.1 percent to 4.84 percent.

However, this is still a competitive rate, and the next best easy-access Isa on the market comes from Plum* who still pays 5.17 percent.

Zopa has announced it will cut its easy-access Isa variable rate from 5.08 per cent to 4.8 per cent from 19 August. The rate includes a 0.5 per cent bonus which is fixed for one year from the date the Isa is opened.

> Find the best cash Isa rates using our best buy tables

Other cash Isa interest rate reductions:

Cynergy Bank easy-access: reduced from 4.87 to 4.82 percent
Castle Trust Bank one-year fix: reduced from 4.94 to 4.9 percent
Oaknorth Bank one-year fix: cut from 4.84 to 4.62 percent
Cynergy Bank one-year fix: reduced from 4.93 percent to 4.85 percent
Shawbrook Bank one-year fix: reduced from 4.96 to 4.68 percent
Cynergy Bank two-year fixed: reduced from 4.68 to 4.6 percent
Cynergy Bank three-year fixed: reduced from 4.56 to 4.4 percent

Oxbury Bank 5.04% Easy Access Account

Oxbury Bank offered the market-leading easy access account, with an impressive interest rate of 5.04 per cent on deposits over £25,000.

This has now been completely taken off the market and is no longer available to new customers. This easy access account was a limited account, meaning it could be withdrawn at any time, which happened to be yesterday.

If you have already opened this account, the rate remains 5.04 percent.

Oxbury Bank’s other easy-access account, which pays 5.02 per cent on balances of £20,000 or more, was also taken off the market yesterday. This easy-access account was also a limited-time offer.

Zopa is also reducing the rate for easy access accounts to between 4.3 percent and 4.54 percent from 19 August 2024.

> Find the best, easily accessible savings rates using our best-buy tables

Other easily accessible rate cuts:

Leeds Building Society easy-access: reduced from 4.85 to 4.8 percent
Aldermore Bank easy-access: reduced from 4.9 percent to 4.75 percent
Hampshire Trust Bank easy-access: reduced from 4.9 percent to 4.65 percent
Monument Bank easily accessible: reduced from 5.03 to 4.7 percent
Wealthify easy-access: reduced from 4.91 percent to 4.65 percent
NuWealth Bank easy-access (basic interest tracker): reduced from 4.91 percent to 4.76 percent – withdrawn from the market as of August 5
Cynergy Bank easy-access: reduced from 4.94 to 4.8 percent
Tandem Instant Access Saver: reduced from 4.9 percent to 4.65 percent
Kroo easy-access (basic interest tracker): Reduced from 4.35 percent to 4.1 percent
Chip easy-access: Reduced from 4.84 to 4.58 percent

Union Bank of India 5.4% one-year fix

Union Bank of India reduced its one-year fixed rate bill from 5.4 per cent to 5.25 per cent. This was the market leading one-year bill.

It’s still the best one-year fixed rate account on This is Money’s independent best buy tables, paying 5.25 percent.

GB Bank also lowered its 5.26 percent one-year bill rate to 4.96 last weekend.

> Find the best fixed savings interest rates using our best-buy tables

Other fixed rate reductions:

Hodge Bank one-year interest rate: reduced from 5.01 to 4.95 percent
Access Bank one year: reduced from 5.25 percent to 5.01 percent
Tandem Bank one-year: reduced from 5.12 percent to 5.01 percent
Smartsave Bank one-year: reduced from 5.06 to 5.02 percent
Cynergy Bank one-year: reduced from 5.1 percent to 4.9 percent
United Trust Bank one-year: reduced from 5.26 percent to 4.96 percent
Shawbrook Bank one-year: reduced from 5.01 to 4.91 percent
Hampshire Trust Bank one-year: reduced from 5.05 percent to 4.84 percent
United Trust Bank 18 months: reduced from 5.05 to 5.95 percent
Cynergy Bank 18 months: Reduced from 4.9 to 4.8 percent
Access Bank two years: From 4.9 percent to 5.06 percent
Hodge Bank two years: reduced from 4.94 percent to 4.74 percent
Union Bank of India two years: Reduced to 4.8 percent to 4.9 percent
RCI Bank two years: reduced from 5 to 4.7 percent
Hampshire Trust Bank: reduced from 4.95 to 4.7 percent
Cynergy Bank two years: reduced from 4.9 percent to 4.7 percent (drawn on August 7)
Cynergy Bank three years: reduced from 4.75 percent to 4.65 percent
Access Bank three years: reduced from 4.8 percent to 4.7 percent
Hodge Bank three years: reduced from 4.75 percent to 4.72 percent (drawn on August 7)
Hodge Bank five years: reduced from 4.56 to 4.49 percent
Hampshire Trust Bank five years: reduced from 4.55 percent to 4.32 percent

Skipton Building Society 3.55% Lifetime Isa

Skipton Building Society has reduced the rate on its Lifetime Isa from 3.55 per cent to 3.05 per cent since yesterday.

With Lifetime Isas you can save up to £4,000 each tax year and receive a 25 per cent government bonus.

The best cash Lifetime Isa in These are the best bargains from Money is offered by Moneybox, which pays a rate of 5 percent. The rate includes a fixed bonus of 1 percent for the first year, the underlying rate is 4 percent.

How is the savings rate?

More cuts could come, especially if the base rate is cut again in September. Savings experts say easy-access accounts will be hit hardest.

Andrew Hagger, founder of MoneyComms, said: ‘A base rate cut will have the biggest impact on the easily accessible interest rates. And if it looks like the September cut is a given, then we are likely to see a fall in rates in the coming weeks.’

James Blower, founder of Savings Guru, said: ‘Rates on easy-access investments will fall, with the best bargains in August likely to be around 4.75 to 4.9 per cent.’

We look at a number of savings accounts that have been affected by the base rate cut.

SAVE MONEY, MAKE MONEY

Investment boost

5.09% on cash for Isa investors

Cash Isa at 5.17%

Including 0.88% bonus for one year

Free stock offer

No account fees and free stock trading

4.84% cash Isa

Flexible Isa that now accepts transfers

Refund of transaction costs

Get £200 back on trading fees

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