Those saving money have been advised to keep a close eye on their accounts as many providers cut savings interest rates.
The warnings follow the Bank of England's decision to drop the base rate of interest by 0.25 per cent.
While saving rate cuts should be expected following the Bank's decision, Moneyfacts.co.uk has warned that some institutions have applied very severe reductions.
A spokesperson from the website highlighted the fact that four firms which had already reduced their rates during the first half of 2005 have implemented further cuts.
Head of savings at Moneyfacts.co.uk, Rachel Thrussell, said: "Customers shouldn't think that, just because their savings provider has already cut their rates this year, they will be spared a further reduction following the recent base rate cut, as we have seen evidence to the contrary."
The four providers who have implemented double rate cuts are: Universal building society, Cheshire building society, Norwich & Peterborough building society and Progressive building society.
While those saving money have not welcomed the Bank of England's decision to cut rates it is hoped that the property and retail markets will benefit from the improved consumer confidence it should create.
Savings interest rates dropping
Financial Services > Savings > Savings and Investments News
Savings interest rates dropping
Thu, 18 Aug 2005
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