Consumer group condemns '˜woeful rates' and '˜scissor-happy' Isa providers

The consumer group analysed 212 instant-access cash Isas from 21 banks and building societies to find the “worst offenders” when it comes to rate cuts over the past six years. It looked at how many cuts were made as well as the number of cuts per account.

The research carried out in April focused on cuts for existing Isa customers and excluded cuts they would have known about when they took out the account, such as bonus rates expiring.

Which? said NatWest had the highest number of cuts per account of the providers it looked at, with eight cuts across two accounts over six years - giving it a rate of four cuts per account.

Its e-Isa previously earned savers 2% - but customers who haven’t moved their money would now be earning a “meagre” 0.25%, Which? said.

The consumer group also found Tesco Bank had made three rate cuts on one account, while Royal Bank of Scotland had made two cuts on one account and Barclays had made 13 cuts across seven accounts.

Which? also found evidence to suggest some building societies had tended to make fewer cuts per account than banks in recent years.

Principality Building Society came out top of the research, having made just one cut across five Isas, and West Bromwich continued to pay existing customers a 1.25% to 1.55% rate they signed up to, even though the accounts in question had closed to new business.