Savers are being reminded to take action ahead of an urgent deadline as a major bank prepares to slash interest rates on two of its most popular accounts later this week.
Barclays has confirmed the savings rates attached to its Rewards Saver and Blue Rewards Savers will be reduced this Friday, September 12.
The bank's Rewards Saver will see its interest rate reduced from 2.25 per cent to 2.10 per cent AER, while the Blue Rewards Saver faces a steeper cut from 2.91 per cent to 2.75 per cent AER.
These rates only apply when customers avoid making withdrawals during the month.
Barclays is preparing to cut interest rates across two popular savings accounts
|GETTY
Should account holders access their funds, they face a significantly lower rate of just 0.6 per cent AER on both products.
The rate reductions form part of a broader pattern affecting British savers, with seven major high street banks implementing cuts throughout September and October.
TSB, Nationwide, NatWest, RBS, HSBC and Co-op Bank have all announced similar moves, reflecting the ongoing impact of the Bank of England's recent base rate reduction.
According to Moneyfacts' latest Treasury Report, merely 26 per cent of savings accounts currently offer returns exceeding the Bank of England base rate of four per cent.
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Britons are looking for the switch deals | GETTYThis represents only a modest improvement from July, when just 10 per cent of standard accounts surpassed the then-higher 4.25 per cent benchmark.
Personal finance specialists have criticised the diminishing value of traditional savings products in recent months.
Kate Steere, money expert at Finder, stated: "The so-called 'rewards' accounts at some of the high street banks are really not that rewarding when even the bonus rate is so low."
She highlighted that "customers can find savings rates twice as good elsewhere - and without being penalised for making withdrawals".
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Chase's new customer offer provides a 4.75 per cent AER for twelve months, substantially outperforming Barclays' reduced rates.
Speaking to Newspage, Rachel Springall, a finance expert at Moneyfactscompare, observed: "Banks taking advantage of savers is nothing new."
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Rachel Reeves's Autumn Budget will fall on November 26
| PAThe typical UK saver, with approximately £16,000 in savings, stands to lose substantial returns by remaining with lower-rate accounts.
Moving these funds from Barclays' new 2.10 per cent rate to Chase's 4.75 per cent offering would generate an additional £424 in annual interest.
Financial experts recommend immediate action, particularly given concerns about Chancellor Reeves' upcoming Autumn Budget and reports of elevated borrowing costs.
Analysts are urging the Chancellor to avoid implementing tax raids on pensions, businesses and working people as part of her fiscal statement on November 26.