Vanguard Implements Monthly Account Fee for Investors Below £32,000 Threshold
Effective January 31, 2025, Vanguard, a prominent investment platform, will introduce a monthly account fee of £4 for customers with investments under £32,000. This new fee structure will apply to all accounts except for Junior ISAs and Managed ISAs. Investors with portfolios exceeding £32,000 will not be affected, as their existing fees already meet or surpass the minimum monthly charge. However, smaller investors will experience a substantial increase in annual fees. For example, an individual with £1,000 invested will see their annual fees jump from £1.50 to £48. This change underscores the importance for investors to carefully assess the fee structure and its impact on their overall returns.
Nationwide Building Society Reduces Interest Rates on Numerous Savings Accounts
Starting February 1, 2025, Nationwide Building Society will implement interest rate reductions across 89 variable rate easy access and instant access savings accounts, as well as cash ISAs. The extent of the reduction varies between 0.10% and 0.26%, depending on the specific account. Fixed-term accounts, which offer a locked-in interest rate for a predetermined period, will remain unaffected by this change. Nationwide’s decision reflects the dynamic nature of interest rates in the savings market, and customers with variable rate accounts are advised to review their options and consider alternative savings vehicles if necessary.
Starling Bank Eliminates Interest Payments on Current Accounts
As of February 10, 2025, Starling Bank will discontinue interest payments on all current accounts. This move will impact both existing and new customers. Currently, Starling offers 3.25% interest on balances up to £5,000, allowing customers to earn up to £162.50 annually in interest. While this perk will be removed, Starling has introduced a new easy access savings account paying 4% interest, which could offer a viable alternative for customers seeking returns on their savings. Depositing £5,000 in this new account would generate £200 in interest over 12 months, potentially offsetting the loss of interest on current accounts.
Barclays Bank Announces Interest Rate Cuts for Two Savings Accounts
Effective February 13, 2025, Barclays Bank will reduce interest rates on its Everyday Saver and Rainy Day Saver accounts. The Everyday Saver rate will decrease from 1.51% to 1.26% on balances up to £10,000, while balances above £10,000 will see an increase from 1.16% to 1.26%. The Rainy Day Saver, available to Barclays Blue Rewards members and Premier Banking customers, will experience a rate reduction from 5.12% to 4.87% on balances up to £5,000, while the rate for balances over £5,000 will remain at 1.16%. These changes highlight the importance of regularly reviewing savings account rates and exploring alternative options when necessary.
Chase Bank Adjusts Interest Rate Tracking for Savings Account
Starting February 19, 2025, Chase Bank will modify the interest rate calculation for its easy-access Chase Saver account. Currently, the account’s interest rate is set at 1.25% below the Bank of England’s base rate. This will be revised to 1.5% below the base rate, resulting in a 0.25 percentage point reduction in the interest rate. With the current base rate at 4.75%, the Chase Saver rate will decrease from 3.5% to 3.25%. This adjustment underscores the direct relationship between the Bank of England’s base rate and savings account interest rates, emphasizing the need for savers to remain informed about economic developments and their potential impact on their returns.
First Direct Eliminates Access to HSBC Self-Service Machines for Cash Deposits
Beginning April 9, 2025, First Direct customers will no longer be able to use HSBC UK self-service machines for cash deposits. First Direct, operating as a telephone and internet-based bank, previously offered customers access to in-person banking services through HSBC branches. While cash withdrawals at HSBC ATMs and counters will remain available, cash deposits will be restricted to over-the-counter transactions. This change may necessitate advance arrangements for cash withdrawals and could result in longer wait times for customers requiring in-person banking services. First Direct customers are encouraged to explore alternative methods for managing their cash deposits and withdrawals.
