Barclays has announced it will be dropping savings rates on two popular accounts.
The Everyday Saver will drop from 1.50% to just 1.25% on balances up to £10,000, while the Rainy Day Saver will fall from 5.00% to 4.76% on balances below £5,000 — anything over will earn just 1.15% interest.
Alastair Douglas, TotallyMoney CEO says: “The Rainy Day Saver rate is competitive if you’re banking less than £5,000, but you will need to pay either £5 a month for a Blue Rewards account, or be depositing at least £75,000 per year with Premier Banking. Meanwhile, any money you have in an Everyday Saver will essentially be losing value as the interest rate is lower than the rate of inflation.
“When shopping around, it’s important to consider smaller and newer banks, as they’ll be more likely to be offering more competitive rates and better service to win your custom.
“A handful of providers are offering easy access savings accounts with rates of more than 4.0%, meaning you can earn money, and make withdrawals when you like. And under the Financial Services Compensation Scheme, the first £85,000 you have saved, per regulated bank or financial institution will be protected. Put simply, loyalty doesn’t pay — but moving banks can.”
This week Barclays will be the first bank to update shareholders when it unveils its full-year performance for 2024.
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The company is expected to reveal stronger profits after a boost from high interest rates and improved deal-making over the year.
A consensus of analysts have predicted Barclays will report a pre-tax profit of £8.1 billion for the year, up from £6.6 billion a year earlier.
The firm said in its previous update in October that improving profits were supported by a continued recovery in mergers and acquisitions, helping the firm’s deal-making business.
Investment banking fees and revenue from underwriting were up 58% year-on-year in the third quarter of 2024.
Recent positive trading means it is forecast to declare a dividend of 8.6p per share, handing a total of £3 billion back to shareholders when combined with £1.8 billion in share buybacks.
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