Base rate expectation leads to savings cuts

Friday 15 October 1993 18:02 EDT
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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Universal has withdrawn its one-year term account, launched in May with rates fixed until November.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 -----------------------------------------------------------------

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