Chop and change for saving accounts

By SYLVIA MORRIS, THIS IS MONEY AND DAILY MAIL SAVINGS EXPERT
Updated: 04:37 EST, 3 March 2010

Banks and building societies are closing top-paying accounts to new savers and cutting rates on previous top payers. But at the same time they are launching new accounts with top rates of interest.

All change: Banks and building societies are cutting previous top payers simultaneously launching new rates

Skipton has closed its Web Saver account paying 2.2% after tax (2.76% before).

The building society's Online Saver, closed to new savers last October, pays a lower 1.56% (1.95%), excluding the initial 0.5 percentage point bonus paid for six months.

The Scarborough (also part of the Skipton) Investment Direct Access at 2.2% (2.76%) was closed to new savers last night.

Meanwhile, West Bromwich has cut the rate on its Star Easy Access (closed to new savers) to 1.44% (1.8%).

This was a very attractive account when it was introduced two years ago, as it allowed 12 withdrawals a year.

At the same time, the society has launched a new branch-based account, Branch Access 3, paying 2.4% (3%) including a 0.8 (1) point bonus for a year.

But you are limited to three withdrawals a year; make any more and your rate drops to just 0.04% (0.05%). The minimum investment is £1,000 and it is open only to those bringing fresh funds to the society.

Existing savers with the society cannot switch from a poorer paying account into this one. It has also launched an internet or telephone-based account paying the same rate.

Birmingham Midshires is offering a new version on its Telephone Extra account at 2.2% (2.75%) including a 1.8 (2.25) point bonus payable for 12 months on £1 or more, with no withdrawal restrictions.