Seven banks to slash savings account interest rates starting today - full list

A raft of banks and building societies are set to slash interest rates on accounts in a blow to savers. Digital bank Chase kicked off the movement on Thursday, dropping the interest rate on its easy access savings account from a market-leading 4.75% down to 4.5% AER.

This change is part of a broader trend ofsavings rate cuts, according to analysts at the personal finance comparison site Finder. In October, six other major banks will also begin lowering their savings rates, starting as early as next week. This comes despite the Bank of England's decision to leave central rates unchanged at 4% in September.

Kate Steere, money expert at Finder, said: "Chase still has one of the best easy access savings rates on the market, but it's a shame to see providers continuing their campaign of slashing savings rates despite no change in the base rate.

"While the Bank of England has indicated that rates are on a downward trajectory, the decision to remain at 4% will have sparked hope for many savers.

"However, this has quickly been snuffed out with the news that Chase and six other major banks are dropping their rates, with many of the easy-access accounts now falling well below inflation."

Banks and building societies cutting savings interest rates in October

Nationwide will cut interest rates on a whopping 24 savings accounts on October 1, including the Flex Instant Saver, which will change from 2.75% to 2.5%, and the Reward Saver, which will change from 3.2% to 3%. On the same day, TSB will drop rates on seven accounts.

NatWest and the Royal Bank of Scotland will drop rates on four accounts on October 13, with some easy access accounts falling as low as 1.06%.

HSBC will lower rates on five accounts on October 20, including the Online Bonus Saver, which drops from 3.75% to 3.5%. Two days later, on October 22, Co-op Bank will lower rates on six accounts, including the Online Saver and Cash ISA, which change from 1.53% to 1.46%.

Barclays plans to cut rates on four accounts on October 30, including the competitive Rainy Day Saver, which is dropping from 4.36% to 4.21% on balances up to £5,000.

Ms Steere continued: "The average UK saver has just over £16,000 in savings. Even a drop of just 0.25% results in a loss of £40 in interest over the course of a year.

"Now more than ever, it's important for savers to shop around, make the most of boosted rates and not be afraid to move their money if there's a better rate on the table."