Shropshire savers lose out as building society cuts rates
A building society which has branches in Market Drayton and Oakengates in Telford has become the latest to cut the rate paid to savers who use its ISAs.
The society will cut 0.25 per cent from its range of ISAs from May 2.
Last year the Bank of England cut the UK's base interest rate to a record low of 0.25 per cent, sending many savers' rates tumbling once again.
Now Leek United has joined the raft of banks and building societies around the country to pass on the rates cut to savers.
Operations director John Kelly said that the market conditions meant Staffordshire-headquartered Leek United had "a duty" to provide savings rates that are "fair and sustainable" to the business.
"This has been an extremely difficult decision to make and one we have not taken lightly, particularly since our savers have already endured several years of historically low returns on their savings," he said.
"We would like to emphasise that despite this change, our rate is still better than that currently available for new customers at many of our local high street competitors.
"Our members' ongoing support and understanding is greatly appreciated, and we would like to assure them that the society remains – as it always has – a trusted and safe pair of hands for their money."
The society says it will write to all those affected, ensuring they have early notice of the rate change ahead of the new tax year.
Earlier this month National Savings & Investments announced a 0.25 per cent cut in rates, and options for savers to get inflation-beating value from their accounts are now thin on the ground.
Negative savings rates have yet to appear, however, which would lead to some lenders effectively charging customers for holding their cash.
The rates cut has provided It is better news for borrowers, however, who are picking up loans with record-low rates of interest.
