Lloyds Banking Group is scrapping 47 of its superseded savings accounts.
Customers of Lloyds Bank, Halifax and Bank of Scotland will see their savings moved into a single variable Isa, web saver or instant-access account paying 0.25% early in the New Year.
A spokesperson for the bank said that two thirds of customers will get an improved rate as a result of this ‘simplification’. However, some customers will see their savings rate drop from 0.95%.
Either way, we recommend that all consumers shop around for the best rate on their savings rather than accept these changes.
The Which? savings and Isa comparison tables let you search hundreds of savings accounts and Isas from providers large and small to choose a great account based on quality of service as well as cost and benefits.
Which? comparison table: Savings accounts and Isas – hundreds of deals compared
What to do if your savings account is scrapped
Customers will be given two months notice of the changes and offered the chance to move accounts before they are automatically switched. Watch out for the letter the providers will be sending through to affected customers – this should have all the relevant details. Banks are required by regulation to give you this warning.
A Lloyds Banking Group spokesman said: ‘We are commencing a simplification of our savings accounts. Providing a simpler range of accounts for our customers means that they can make the most of their savings in a simple, clear and easy way.’
Scrap the savings trap
Which? is campaigning for banks to kill off superseded ‘zombie’ savings accounts and ensure that the interest rate and terms for all accounts are genuinely clear, which includes improving notification practices.
However, we also think that banks need to stop customers being dumped into poor value savings accounts and ISAs at the end of fixed terms.
Savers are collectively losing out on £4.3bn each year by being stuck in sub-standard accounts.You can help put an end to this by signing our ‘Scrap the Savings Trap’ petition.
Find out more: Scrap the savings trap – sign the petition