Five of UK's major banks and how they are slashing their interest rates in days
Most high-street banks have warned they will be slashing interest rates on some savings accounts in the coming weeks. The decision follows the Bank of England's announcement on May 8 that it had cut the base rate (the interest rate it charges other banks and lenders to borrow money) from 4.5 per cent to 4.25 per cent.
While the move may be a welcome relief to households with a tracker mortgage, who could see their monthly payments drop by around £29, it's bad news for Brits who have been stashing away their savings for a rainy day. This is because a reduced base rate usually results in lenders dropping their interest rates - meaning you'll get a smaller return on your savings.
The Mirror has therefore contacted the UK's most popular banks, including HSBC, Lloyds, Halifax, and Santander, to see how the announcement will impact their customers. While all banks confirmed the reduction will hit savers, Brits still have time to shop around - as the interest rate cuts don't kick in until later this month, or in June.
HSBC
"We are firmly focused on supporting customers with their savings," a HSBC spokesperson told the Mirror. "While changes are being made to some of our savings rates, with rates from July 21 to include a regular savings account at 5.00% and 3.75% on our Online Bonus Saver, we also provide overall value on our savings accounts that goes beyond interest rates to provide flexibility, convenience, simplicity and organisational and financial stability for customers who want to save with a trusted high street brand.
"There are several factors taken into account when setting savings rates. We have designed our savings accounts to make it easy for our customers to start and maintain a savings habit so they can save towards longer term goals. We also proactively remind customers of the need to review their savings, highlighting products that might also be suitable for them and where they could benefit from a higher rate."
There are no changes to the Premier Savings easy access account for those with balances over £100,000 (2.00%). However, Balances up to £50,000 will fall from 1.50% to 1.35%, while balances between £50,000 and £100,000 will decrease from 1.60% to 1.45%.
There is also no change to HSBC's Regular Savings Account, which remains at 5.00%. This account allows customers to stash away between £25 and £250 per month, up to a total of £3,000. HSBC's Fixed Rate Cash ISA (which requires at least £500) saw its interest rate drop from 4.10% AER to 4.00% AER on May 12, 2025.
Lloyds
A Lloyds spokesperson told the Mirror it already has written to existing savers to advise them of 'upcoming changes to their rates' that will come into effect on June 3. For new account openings, the rate change came into effect earlier this week (May 21).
Easy Saver/ Cash ISA accounts with balances between £1 and £25,000 will see the interest rate decrease from 1.10% to 1.05%. Balances from £25,000 to £100,000 will decrease by 0.5%, dropping from 1.20% to 1.15% - while those with more than £100,000 will be hit with a 0.20 decrease (1.40% to 1.20%). Customers that have an Advantage Saver will be stung the hardest, as its current 3.50% interest rate will slump to 3.25%.
Halifax
Halifax's Everyday Saver and ISA Saver variable accounts will follow the same interest rate decrease as Lloyds' Easy Save and Cash ISA accounts - as both banks are owned by Lloyds Banking Group. However, its Bonus Saver account will fall from 3.40% to 3.05%.
NatWest
"Following the Bank of England base rate cut, we will be passing on the rate cut in full to our customers on a Standard Variable Rate (SVR) mortgage," a spokesperson for the bank said. "SVR will be reduced from 7.49% to 7.24%, effective from 1st June. SVR customers may also be able to save money by switching to one of our fixed rate mortgages.
"Following the Bank of England base rate cut, we have made reductions to some of our variable rate savings accounts. We will communicate these changes to customers in due course, giving at least 14 days' notice of any changes."
Until 29 May 2025
From 30 May 2025
Digital Regular Saver
£1 - £5,000
over £5,000
6.17% / 6.00%
1.25% / 1.24%
5.50% / 5.37%
1.15% / 1.14%
Flexible Saver
£1 - £24,999
£25,000 - £99,999
£100,000 - £249,999
£250,000 - £999,999
£1,000,000+
1.25% / 1.24%
1.85% / 1.83%
2.10% / 2.08%
2.70% / 2.67%
2.70% / 2.67%
1.15% / 1.14%
1.70% / 1.69%
1.95% / 1.93%
2.55% / 2.52%
2.55% / 2.52%
Savings Builder
£1 - £10,000
over £10,000
2.00% / 1.98%
1.25% / 1.24%
1.75% / 1.74%
1.15% / 1.14%
Help to Buy ISA (Tax-free)
£1+
2.20% / 2.18%
2.05% / 2.03%
Payment Accounts
Until 14 July 2025
From 15 July 2025
First Saver
£1+
2.25% / 2.23%
2.05% / 2.03%
Adapt Account
£1+
2.25% / 2.23%
2.05% / 2.03%
First Reserve
£1+
1.25% / 1.24%
1.15% / 1.14%
Primary Savings
£1 - £24,999
£25,000 - £99,999
£100,000 - £249,999
£250,000 - £999,999
£1,000,000+
1.25% / 1.24%
1.85% / 1.83%
2.10% / 2.08%
2.70% / 2.67%
2.70% / 2.67%
1.15% / 1.14%
1.70% / 1.69%
1.95% / 1.93%
2.55% / 2.52%
2.55% / 2.52%
Santander
Santander confirmed it will be reducing interest rates for savings products linked to the BoE base rate - starting from June 3, 2025. This includes Rate for Life and Good for Life savings accounts, as explained below:
Good for Life ISA
AER/tax free (variable)
1.00% for £1+
Article continues below
1.00% for £1+
4.50% for £1,000+
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