Following the drastic bank interest rate cut of 1.5 per cent, 24 savings providers have been quick to cut the rate on their best products, while 47 have pulled savings accounts altogether new research from uSwitch.com has revealed.

According to the study, savings interest rates have been cut by between 1.5 and 2.55 per cent, pushing some cuts a whole percentage point higher than the rate cut was.

Accounts including Lloyds TSB, Anglo Irish Bank and Norwich & Peterborough building society are some of the savings accounts that have seen their rates slashed by at least 1.5 per cent.

Commenting Louise Bond, personal finance manager at uSwitch.com said: “Providers have once again demonstrated their willingness to act fast and cut rates when it serves their purpose.

“In the wake of the base rate cut numerous savings providers have taken drastic action in an attempt to safeguard their margins.

“The plethora of changes brought in by providers highlights the need for consumers to keep a close eye on their savings accounts” said Ms Bond.

However, there are high interest rate options remaining, she added: “For those consumers still looking to make the most of their savings some of the high variable rate accounts may look appealing, but with further base rate cuts predicted these rates certainly won’t stay around for long.”

Offshore accounts such as the Halifax International Fixed Rate Web Saver offering a current rate of 5.99 per cent could offer a solution for savers wanting a long term rate.

However, for those savers looking for a quick fix, high interest accounts such as the regular Halifax International Regular Saver offering 8 per cent, or the Alliance & Leicester eSaver and Online Tracker with rates of more than 6 per cent could tick all the boxes.

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