End of 5% savings deal: How 27 easy access accounts were cut or withdrawn after base rate change

Last week, the Bank of England took action and cut the base rate from 5 percent to 4.75 percent.

And subsequently, big banks including Chase and Monzo have passed the rate cut on to savers through their easy access deals.

Monzo has revealed it is cutting its easy access rate to 3.6 per cent from 3.85 per cent at the end of the month.

Meanwhile, Chase will reduce its easy access rate to 3.5 percent from 3.75 percent on November 14.

Chip has reduced its easy access rate to 4.75 percent from the market-leading 5 percent, one of the few accounts that was still paying 5 percent.

This is Money’s analysis found that at least 27 easy access accounts have had their rates reduced or taken off the market since the Bank of England cut the base rate to 4.75 per cent.

Fixed-rate accounts have fared no better than their easy-access counterparts, and leading one- and two-year fixed-rate bonds have fallen, according to Moneyfacts Compare.

The rates watchdog has warned that fixed savings rates, including savings accounts and Isas, have fallen to their lowest levels in more than a year.

The maximum one-year bond fell to 4.85 percent, which is now 0.21 percentage points higher than the highest five-year fixed bond. The rate gap was 0.31 percentage points a month earlier.

There are no longer fixed bonds that pay 5 percent. Caitlyn Eastell of Moneyfacts said: “We’re unlikely to see them return.”

Savers holding a one-year bond maturing soon can expect returns 1.2 percent lower than the market leader by November 2023.

The best one-year bond still available pays 4.8 per cent on Atom Bank and can be opened with a deposit from £50, This is Money savings tables show.

While Smartsave Bank offers a two-year bond that pays 4.61 per cent and can be opened with a minimum deposit of £10,000.

Longer-term fixed rate bonds pay 4.6 per cent over three years, such as Atom Bank, while Atom Bank’s five-year bond pays 4.5 per cent.

Eastell said: “Consumers would do well to act quickly if they spot an attractive offer, as they may have a shorter shelf life.”

You can still get 5% with an Isa… for now

The Isa market is the only remaining corner of the market where savers can find savings deals paying more than 5 per cent, with Moneybox and Trading 212 both offering 5.17 per cent on their easy-access cash Isas.

Top fixed rate Isas pay less than top fixed rate bonds. Savers can get a one-year fixed rate Isa paying 4.46 per cent from Kent Reliance and a two-year fixed rate Isa from Shawbrook Bank paying 4.32 per cent.

James Blower, founder of the Savings Guru website, said: ‘Easy access Isas are being propped up by providers trying to acquire new customers, so this market is slightly artificial.

‘It is expected to be most of November before the easily accessible Isa market stabilizes.

“There are fewer Isa providers from newer banks, who change prices quickly, so it is expected to take two weeks before there is any real reaction to the base rate cut.”