Nearly half a million Barclays savers face rate cut next year as bank moves customers from old accounts
Some 400,000 Barclays savers will see a rate cut in early 2015.
This is because next February the bank will move three million savers from 20 old accounts no longer open to new savers into its easy-access Everyday Saver.
It pays a pitiful 0.31 per cent on balances up to £10,000 and, worse, includes a 0.21 percentage point bonus for a year. After that, the rate is 0.1 per cent.
Cutting rates: Barclays savers will see rates cut as the bank moves 3million customers from old accounts.
The rate on £10,000 to £25,000 is just 0.46 per cent, including the bonus; 0.6 per cent on £25,000 to £50,000 and 0.7 per cent up to £85,000.
Hardest hit will be Barclays’ 50 Day account holders now earning 1.85 per cent on £10,000 or more.
They will see their rate tumble to 0.46 per cent. That works out as a drop in interest of £139 a year before tax on each £10,000 in the account - down from £185 to just £46.
Even worse, after a year it will drop to 0.25 per cent, bringing the interest down to £25 once the initial bonus stops.
Direct Access savers will also be hit, with interest down from £135 to £46 in year one and dropping to £25 after 12 months.
Barclays claims 2.6 million customers will be better off. But that is only because they are in terrible closed accounts with a typical rate of 0.1 per cent.
The accounts to be moved are: Active Savings, Bonus Saver, Easy Saver, Instant Cash Account, Day to Day Savings, Direct Access, Direct Access Plus, E-Savings, Essential Savings, Barclays Instant Savings, MoreforMore Savings, Nest-egg Savings, Postal Savings, Regular Savings, Reward Saver, Savings Builder, Tracker Savings, 30 Day Savings, 50 Day Notice and 60 Day Savings.
The move follows cuts suffered by 1.6million of the bank’s cash Isa savers after it moved two million-plus savers last week from 11 closed accounts into its Instant Cash Isa 1.
Barclays says they will lose an average of just £26 annually. But its Freestyle Cash Isa savers saw their rate crash from 2.8 per cent to 1.28 per cent - a loss of £152 annually on each £10,000.
Most watched Money videos
- How to invest for income and growth: SAINTS' James Dow
- Mail Online takes a tour of Gatwick's modern EV charging station
- Land Rover unveil newest all-electric Range Rover SUV
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- Former Chancellor Nadhim Zahawi to chair Very Group
- Heathrow takes fresh swipe at the tourist tax as it...
- How reliable are the most popular used cars? Here's how...
- Taxpayer stake in NatWest falls below 27% as Treasury...
- UK Government sells another chunk of NatWest shares
- Anglo strikes out alone - but can it survive a bid...
- Anglo American rejects rival BHP's £34bn second takeover bid
- Police not interested in shoplifting, says M&S as thefts...
- London's 'Mr Super Prime' to take centre stage in...
- Diploma shares top FTSE 100 risers after firm raises...
- Phoenix Group finance chief to step down from insurer
- A MILLION more people have taken on mortgages they will...
- Used car marketplace Cazoo looking for buyers as it nears...
- Evri issues warning over huge rise in smishing scams -...
- US owner of Boots steps up efforts to find a buyer for...
- I repeatedly bail out my partner from his financial...
- MARKET REPORT: FTSE falters despite UBS call to buy...
- Will Nationwide pay out a £100 loyalty bonus again this...