Barclays is making changes to the interest rates on two of its most popular savings accounts. Starting this Thursday, February 13, some customers will see their interest earnings decrease, while others may benefit from a slight increase. If you have savings with Barclays, here’s what you should know about these updates and how they may impact you.
Interest Rate Cuts for Everyday Saver and Rainy Day Saver
Many Barclays customers with an Everyday Saver account will experience a drop in their interest rates. If you have less than £10,000 saved, your interest rate will decrease from 1.51% to 1.26%. This means your annual earnings from interest will be lower.
For those with a Rainy Day Saver account—which is available only to Barclays Blue Rewards members and Premier Banking customers—the interest rate is also going down. If you have less than £5,000 saved, your rate will drop from 5.12% to 4.87%.
How Much Will You Lose?
To put this into perspective, someone with £5,000 saved in either account will earn about £12.50 less per year due to the rate cuts. While this may not seem like a massive reduction, it could add up over time, especially if interest rates continue to decline.
Good News for Some Everyday Saver Account Holders
While many customers will see a drop in their savings interest, there is some good news for those with larger balances. If you have more than £10,000 saved in an Everyday Saver account, your interest rate will increase from 1.16% to 1.26%. Although this isn’t a huge rise, it still provides a small boost for those with higher savings.
Why Are Interest Rates Changing?
These changes come as the Bank of England adjusts its base interest rate. The central bank has been making adjustments in response to inflation, which is expected to peak at 3.7% later this summer—higher than previous estimates. The next interest rate announcement from the Bank of England is scheduled for March 20.
This means that banks, including Barclays, are adjusting their savings rates to align with the broader economic situation. If inflation continues to fluctuate, further changes in savings and loan interest rates could follow.
Barclays’ Recent Payment Outages
In addition to these interest rate changes, Barclays has faced major technical issues in recent days. Between January 31 and February 3, many customers were unable to access their wages or make payments due to a widespread system outage. While Barclays has since resolved these problems, the disruptions caused frustration for many account holders.
What Should You Do Next?
If you’re a Barclays customer, it’s important to review your savings and consider your options:
- Compare Savings Accounts – Check if other banks are offering better interest rates.
- Look Into Fixed-Term Deposits – These accounts often provide higher interest rates if you’re willing to lock in your money for a set period.
- Monitor Interest Rate Announcements – The next Bank of England decision on March 20 could lead to further changes.
- Consider Barclays Alternatives – If you’re unhappy with these rate cuts, exploring other financial institutions might be a good idea.
As interest rates fluctuate, staying informed and proactive can help you make the most of your savings.
Barclays’ latest changes mean that many savers will earn less interest on their deposits. Customers with less than £10,000 in an Everyday Saver account and those with a Rainy Day Saver will see their earnings drop. However, if you have more than £10,000 in an Everyday Saver, you will benefit from a slight interest rate increase.
These adjustments are linked to the Bank of England’s efforts to manage inflation, and further changes could be coming in the months ahead. If you’re a Barclays customer, it’s a good time to evaluate your savings strategy and ensure you’re getting the best return on your money.
