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News: Time to check your savings rates

Although Base rate was cut by 0.25% on August 4th, many of the changes to savings account interest rates are only now starting to kick in. And as financial information provider, Moneyfacts, points out, with rate cuts ranging from 0.25% to up to 0.60%, it is important for consumers to make sure they are still getting a good deal.

With some of the big high street names such as Halifax, Cheltenham & Gloucester and Lloyds TSB cutting rates on some accounts by up to 0.45%, 0.60% and 0.60% respectively, customer loyalty may indeed be tested to the full.

At the Halifax, for example, the Instant Saver £500+ tier has been reduced from 2.55% to 2.10%, ISA Saver cut from 4.10% to 3.65% (£1 tier) and the 60 day gold account £5k tier shaved from 2.90% to 2.50%.

Meanwhile, Lloyds TSB's Reward Savings account has 'rewarded' savers by making two rate cuts in the space of 4 months - all tiers having been reduced by 0.15% on June 17th and then by 0.45% on September 1st, giving a total cut of 0.60%.

Elsewhere, Mini Cash ISA (£3k) has seen its rate reduced by 0.40%, following a 0.10% cut on June 17th, giving a total overall cut of 0.50%.

At Cheltenham & Gloucester a similar double whammy has now been enforced - the Direct Transfer account (all tiers) having been reduced by 0.15% on June 17th and then by 0.45% on September 1st, giving a total cut of 0.60%.

Even customers with accounts at some building societies will find their rates have been reduced by more than the expected quarter point reduction.

For example, Universal BS Direct 30 saw a reduction from 4.20% to 3.95% on July 18th and then again by 0.40% to 3.55% on August 15th (total cut 0.65%). And Lambeth BS Cash Mini ISA has now been cut from 5% to 4.40%.

On a more positive note, although Alliance and Leicester is reducing some tiers of its Cash Isa by up to 0.50%, it will be writing to customers affected and suggesting they may like to transfer to the Direct ISA product, which gives them a better return.

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