Base rate expectation leads to savings cuts

BUILDING societies are continuing to trim rates and withdraw accounts in the expectation that there will be another cut in base rates shortly.

Universal has withdrawn its one-year term account, launched in May with rates fixed until November. This paid up to 8.35 per cent gross on deposits of pounds 100,000.

National & Provincial Building Society has cut rates on all accounts by up to 0.1 per cent including those on Investment Reserve, which pays a bonus of 1.5 per cent if there are no withdrawals in a year. The top rate, excluding bonus, is now 6.55 per cent gross on pounds 250,000. The starting rate is 4.6 per cent gross on pounds 5,000.

Halifax has launched Premium International, a 90-day notice account, through its Jersey division. The minimum investment is pounds 25,000 and rates range from 6 per cent gross on this amount to 6.8 per cent on pounds 100,000.

----------------------------------------------------------------- SIX OF THE BEST ----------------------------------------------------------------- SAVINGS ----------------------------------------------------------------- Type Account Term *0% *25% *40% Min Pounds GIB Consolidated Life 4 years 6.00 6.00 5.10 2,000 B Soc Bristol & West Instant 7.25 5.44 4.35 50,000 Tessa Hinckley & Rugby 5 years 8.05 8.05 8.05 25 ----------------------------------------------------------------- *Compounded annual rate except for GIB (guaranteed income bond) ----------------------------------------------------------------- Source: Chase De Vere 071-404 5766 -----------------------------------------------------------------