More misery for savers as Halifax and Lloyds become the latest to slash rates on easy-access and cash Isas to 0.05%
Halifax and Lloyds are the latest big banks to announce they will pay savers just 0.05 per cent on their easy-access and cash Isa accounts.
The rate on Lloyds's Instant Saver and Instant Cash Isa will fall from 0.25 per cent to 0.05 per cent from December 8. So will the rate on the Halifax Instant Saver and Instant Isa Saver.
Savings slump: Rates will be cut on Halifax and Lloyds' easy access and cash Isa accounts
The 80 per cent cut will affect the majority of the banks' easy-access and cash Isa savers, as these are the accounts into which they move you once you have been with them for 12 months.
For example, if you take out a Halifax Isa Saver Variable now, you will earn 0.35 per cent for a year.
After that, your money is moved into the Halifax Instant Isa Saver, where the rate will be just 0.05 per cent from December.
Since official interest rates fell to 0.25 per cent in August, big banks have squeezed everything they can out of savers - and some will soon pay virtually nothing.
From the end of this month, NatWest's Cash Isa, once a top payer, will fall to 0.01 per cent on sums up to £25,000 - £1 a year on £10,000.
Even on £25,000, the rate is only 0.05 per cent, down from 0.5 per cent.
Barclays Everyday Saver is also set to drop to a lowly 0.05 per cent from December 1.
And from November 1, Santander rates fall, too. Its Easy Isa account will pay just 0.1 per cent at best.
You'll earn the same rate in its Isa Saver with balances up to £10,000. You end up in this account after a year in its Direct Isa or E-Isa.
HSBC already pays as little as 0.05 per cent on its easy-access Flexible Saver and Instant Access Savings accounts.
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