Ford Money pulls all but one product from sale for new customers in fresh savings blow
Ford Money announced the decision today, confirming new customers will no longer be able to access any of its products, except for the Flexible Cash ISA, until further notice. However, existing Ford Money customers will still be able to apply for these products at their current rates.
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The withdrawn products are the Flexible Saver, the one-year Fixed Saver, the two-year Fixed Saver, the one-year Fixed Cash ISA, and the two-year Fixed Cash ISA.
Ford Money commented: “We have taken this action as part of our routine practice of regularly reviewing our product portfolio and positioning within the wider savings market, as well as our current deposit taking needs.
“All changes at Ford Money are made to ensure we’re offering customers the most appropriate and competitive accounts possible at any given time in the market.”
Now, the only product that is available to new customers is the Flexible Cash ISA, which is currently paying 0.85 percent.
The only product available to new customers is the Flexible Cash ISA paying 0.85%.
So, what are the annual rates available for existing customers on the affected products?
Ford Money affected products – Rates for Existing Customers (Annual)
Flexible Saver – 1.07 percent
Fixed Saver [1 Year] – 1.45 percent
Fixed Saver [2 Year] – 1.55 percent
Fixed Cash ISA [1 Year] – 1.10 percent
Fixed Cash ISA [2 Year] – 1.20 percent
Elsewhere in interest rates news, Santander has recently announced changes to in-credit interest rates on current accounts.
From August 3, 2020, the bank will reduce the interest rate on its 1|2|3, Select and Private Current Accounts from 1.00 percent to 0.6 percent per annum on balances up to £20,000.
Prior to a cut which took place on May 5, 2020, the Santander 1|2|3 account paid 1.5 percent interest.
The bank said the upcoming change is being made as a result of the recent reduction in the Bank of England Base Rate.
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Following two successive cuts from 0.75 to 0.25 and then to 0.1, the Bank Rate is now at a record low.
The Bank of England announced the reductions back in March, as emergency measures in response to the ongoing coronavirus crisis.
The Bank of England explains the Bank Rate is set to influence other interest rates.
Santander also said the reductions it has announced take account of the “ongoing financial impact of regulatory changes in the banking industry”.
Susan Allen, Head of Retail Banking at Santander, said: “While we have had to make a difficult decision in light of the current interest rate environment, our 1|2|3 Current Account continues to provide good ongoing value to customers.
“It remains the only account that offers the ability to receive both interest on balances and cashback on household bills, meaning customers can earn almost £300 per year, for an account fee equivalent to £60 per year.
“Customers are also able to continue to make use of the exclusive benefits offered by being part of our 1|2|3 World.”
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