Building society savings rates come down

HALIFAX Building Society is cutting rates on its savings accounts by an average of about 0.9 percentage points today, writes Maria Scott.

The cuts vary, however. The society's Maxim current account now pays one percentage point less on amounts up to pounds 50, bringing the net rate to 0.75 per cent. There is also a one point cut on sums over pounds 5,000, bringing the net rate to 4.13 per cent. The cuts are lower on the account's other tiers. The society is today launching a new savings account, Premium Xtra. Investors receive a bonus of 0.25 per cent gross on each anniversary of opening their account as long as no capital has been withdrawn in the previous year.

The minimum investment is pounds 10,000. The rates, including the bonus, are 6.60 per cent net on pounds 10,000 to pounds 25,000; 6.86 per cent on pounds 25,000 to pounds 50,000; 7.09 per cent on pounds 50,000 to pounds 100,000 and 7.20 per cent on larger sums.

Savers can have one withdrawal a month of up to pounds 5,000, although they would then lose the bonus.

Cheltenham & Gloucester Building Society is cutting the interest rates on its new London Deposit Account. Deposits between pounds 5,000 and pounds 10,000 now earn 6.82 per cent net, between pounds 10,000 and pounds 25,000 7.2 per cent and pounds 25,000 or more 7.5 per cent. The rate is guaranteed until 1 January, 1993.