A bank account change is being made for thousands of Barclays customers coming in WEEKS and you could be worse off. Barclays is set to cut interest rates on two of its easy-access savings accounts – the Everyday Saver and the Rainy Day Saver.
The interest rate for the Everyday Saver is dropping from 1.51% to 1.26% on balances up to £10,000. The Rainy Day Saver, for balances up to £5,000, the rate is going down from 5.12% to 4.87%, the high street bank has also confirmed.
The bank explained: “Interest rates are banded until 12th February 2025. This means that you’ll earn the higher rate on the first £10,000 of your balance and the lower rate on the additional balance over £10,000. For example, if you had a balance of £10,100 interest would be calculated at the higher rate on the first £10,000 of your balance and the lower rate on the additional £100.”
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This account is suitable for money you’ll spend in the short term and need access to. You’ll earn a higher interest rate on up to £10,000, and a lower interest rate on over £10,000. If you want to save more than £10,000 and earn more interest, you could consider our other savings accounts.
You can also split your savings across a combination of accounts, which could include multiple Everyday Saver accounts, so you can benefit from different interest rates and withdrawal options. For savings accounts, the interest rate tells you how much interest we’ll pay you for saving with us – it’s shown as a percentage of your account balance.
The higher the interest rate, the more interest you’ll earn by leaving money in the account. Your Personal Savings Allowance (PSA) is the total amount of interest you can earn each tax year, across all your accounts (except ISAs) with any bank or building society, without paying tax. The tax year runs from 6 April to 5 April.
For basic-rate taxpayers, the PSA is £1,000 and for higher-rate taxpayers, it’s £500. Additional rate taxpayers don’t have a PSA. You’ll need to start paying tax on any interest you earn above your PSA.