Sweet deal turns sour: Nottingham BS slashes short-lived Beehive easy-access savings rate to just 1% – where can you head next?
Nottingham Building Society savers who bagged themselves a top easy-access rate of 1.55 per cent last October are facing the prospect of it paying more than a third less after a pair of rate cuts.
Holders of the society’s Beehive Savings eSaver Issue 9 account may be buzzed off after being notified by the mutual that their variable rate would be cut to 1 per cent on 21 November.
In a message, Beehive Savings told account holders that the rate would be cut ‘as a result of our latest review’.
Stung: Beehive Savings launched a sweet 1.55% easy-access deal last October, which will see the rate drop to 1%
The account had previously had its rate reduced from 1.55 per cent to 1.45 per cent on 7 October, having paid the higher rate for almost a year.
This is Money readers may remember the launch of the online easy-access account last October, which offered a higher rate than Marcus’ headline-grabbing 1.5 per cent account.
It lasted just 48 hours before it was pulled, due to what the building society called ‘unprecedented demand’ following its decision to leapfrog Goldman Sachs.
While closed to new entrants, the 1.55 per cent paying eSaver Issue 9 account did continue to pay that top rate to those lucky enough to nab the deal until last month, when the rate was first cut.
The two rate cuts in as many months mean that someone with £50,000 deposited with the society will go from being paid £775 in interest on their balance to £500, a large drop.
Savers have been squeezed in recent months with a series of rate cuts to both easy access and fixed-rate savings accounts
Nottingham Building Society told This is Money: ‘As mortgage rates have continued to decrease, this has led us to review our interest rates.
‘Unfortunately, what we were able to offer at one point in time is not always possible to offer on an ongoing basis.
‘The current climate is particularly challenging creating fast-moving market conditions that have resulted in us needing to review what we are able to pay savers more regularly.
‘It’s regretful that this has affected the rate on our eSaver Issue 9 so soon after the initial rate change, but it has been necessary on this occasion.’
Where can savers get a sweeter deal?
At one point in June 2019 there were four easy-access accounts paying 1.5 per cent; alongside Marcus, Cynergy Bank and Virgin Money also offered the rate.
Beehive also offered an online easy-access account paying 1.5 per cent and this one hasn’t seen its rate cut, yet.
But since the summer, easy-access savings rates have fallen.
Most notably Marcus, which previously had sat at the top of the best buy tables almost uninterrupted since its launch in September 2018, cut its rate to 1.45 per cent.
One senior banker previously told This is Money that they’d be surprised to see another 1.5 per cent easy-access rate in 2019, and with the continued mortgage price war and political uncertainty savers can really only expect savings rates to go one way.
Currently, Coventry Building Society offers the best buy easy-access rate in the independent This is Money savings tables.
Its 1.46 per cent paying account comes with a bonus rate of 0.31 per cent and a limit on withdrawals. It can be opened online, in branch, by phone or by post.
THIS IS MONEY’S FIVE OF THE BEST SAVINGS DEALS