Will you be told about rate cuts on your savings?

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If you have money in a savings account or a current account, will you be told about rate cuts on your savings? Find out what the rules say.

What you must be told about the interest you’re getting

Banks and building societies must display information about the interest rate you’re getting on your savings. This must be in a ‘summary box’ format and should be easy to find on the bank or building society’s website. If you operate your account online, the interest rate information should be no more than one click away from the bank’s home page or no more than one click away from the first page that you see when you log on.

If the interest rate falls on your current account

If you have money in your current account and your bank wants to reduce the interest rate, it has to tell you two months before the rate reduction happens.

The rules say that the bank has to write to you or email you 60 days before the rate falls. It can’t just put a notice up in the bank branch or stick an update on its website.

If you have money in a tracker account

If your savings are linked to the Bank of England base interest rate you don’t have to be told about a rate change in the same way.

If the interest rate falls on your cash ISA

If you have money in a cash ISA, your bank or building society, has to email or write to you (i.e. contact you individually) if there’s a fall in the interest rate. It has to do this as long as you have at least £100 in your account. It doesn’t matter how small the reduction in interest rate is. These rules took effect from December 1st.

Previously, you only had to be written to or emailed if two conditions were met:

  1. You had £500 or more in your account
  2. The interest rate fell by more than 0.25% at one time or by more than 0.5% over 12 months.

If the interest rate falls on your notice account

If you have money in a notice account – an account where you have to tell your bank or building society before you can take money out – the same rules apply. This means you have to be emailed or written to (i.e. contacted individually) if there’s a fall in the interest rate, as long as you have at least £100 in your account. It doesn’t matter how small the reduction in interest rate is. These rules took effect from December 1st.

Previously, you only had to be written to or emailed if two conditions were met:

  1. You had £500 or more in your account
  2. The interest rate fell by more than 0.25% at one time or by more than 0.5% over 12 months.

Related articles:

Tax-free savings allowance explained; interest of up to £1,000 a year tax free

The basics of cash ISAs; making the most of tax-free savings

Premium Bonds; are they worth saving in?

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