Royal Bank of Scotland & Nationwide Slash rates on variable savings

Royal Bank of Scotland (RBS) along with Nationwide, Alliance & Leicester, NatWest, Barclays (LON:BARC), Halifax, Lloyds TSB (LON:LLOY) and Abbey have all slashed the interest on the variable saving accounts, some by more than 1 percent according to moneyfacts.co.uk.

On some accounts rates have been slashed to just 0.1 percent at a time that many households are being dragged down by the recession.

Nationwide, Britain’s largest building society is one the financial institutions which have cut its interest rates to 0.1 percent.

With the Bank of England Monetary Committee set to cut the base interest rate to their lowest level in 315 years analysts warn that some accounts could nosedive to zero percent within days.

If this did happen it means that the banks saving interest rates would fall below the rate of inflation and customers would end up paying the banks to keep their money safe.

Source: DailyMail