UK Business News

Banks´s savings accounts reveal shockingly poor interest rates

Britain´s most popular banks have recently unveiled the interest rates for their individual savings accounts (Isas) in 2019; the results show that on average, most annual profits aren´t enough to buy a cup of coffee.

Money Mail figures have shown that accounts such as the Halifax Instant Isa Saver and Santander Easy Isa have lowered interest rates to just 0.2 per cent meaning for every £100 put in, just 20p will be earned in profit.

Savers who managed to fill their Isas with the maximum annual cash allowance for will have received just £40 interest in the last 12 months.

Another British bank that has reined in the amount of interest in Cash Isas is NatWest, offering 0.2 per cent on balances below £10,000. 10 years ago, the same account offered returns of up to £600 on £20,000, however, in 2019 profits are £560 lower.

According to the most recent statistics, almost eight million savers have opened a cash Isa in the tax year 2017/2018, adding approximately £38.8bn to these accounts.

Altogether, savers contain a huge £291bn in their combined cash Isas and nearly half of this is situated in banks such as Barclays, Lloyds, Halifax, Bank of Scotland, HSBC, RBS, NatWest, Santander, TSB and Virgin Money.

The Guardian previously suggested that the possibility of interest rates going negative for savers in the UK cannot be ruled out entirely. In European countries like Switzerland and Denmark some banks are now charging wealthy individuals for looking after their cash instead of paying interest.

Andrew Hagger at the financial website MoneyComms said: “It’s not looking good for savers at the moment.”  When asked whether savings rates could potentially head towards zero, he responded: “Potentially on some instant-access accounts, that could happen. If the base rate was cut, in some instances we could be heading towards zero or pretty close.”