Lloyds Banking Group is set to replace its 47 historic savings accounts, offered across its three brands- Lloyds, Halifax and Bank of Scotland- with three to simplify its range and improve customer transparency.
The three accounts will be an instant-access Isa, which is an online easy-access saver and an easy-access account, and will each pay 0.25% as interest.
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A third of the bank’s customers holding money in any of the 47 accounts will see their income plummet due to the rate cuts.
Most account-holders are expected to gain from the change, but in worst cases rates will be reduced by nearly two thirds, from 0.95% to 0.25%.
Savers holding money in the Halifax Websaver Extra, which pays 0.95%, will lose an average of 58p on a balance of £1,000 following the changes.
On the contrary, the Halifax Online Saver and Web Saver Variable will increase from 0.1% to 0.25%, while the Lloyds eSavings and Internet Saver will rise by the same amount.
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By GlobalDataMoreover, the bank has also decided to phase out any restrictions that customers faced on withdrawals and they will now be free to move their money.
Customers of the bank will be transferred to one of the new accounts automatically by next year.
