Best-buy savings accounts pulled

At least 15 best-buy savings deals have been withdrawn or had their interest rate slashed in the last fortnight, piling on the gloom for those relying on the income from their nest-egg cash. Fixed-rate savings bonds and cash Isas have borne the brunt of the cuts. Among those affected are Barclays' Golden Isa , which has lost its interest bonus, taking the rate for new applicants from 3.06% to 2.06%, and Nationwide's Champion Isa , where the rate has been cut from 2.8% to 2.6%. Northern Rock's Regular Saver account, paying 5%, and two Coventry building society fixed-rate Isas have been pulled in the last few days, as has Leek United building society's five-year fixed-rate Isa paying 4.6%, says Andrew Hagger at Moneynet.co.uk. "The bad news for UK savers just seems to go on and on, with record low rates, the axing of child trust funds and changes to capital gains tax potentially threatening company save-as-you-earn schemes," he adds. The ranks of those clamouring for best-buy savings rates have been swelled by people whose good fixed-rate deals are coming to an end, and who are desperate to reinvest at the highest rate possible. A glance at Moneyfacts shows savers can get 3%-plus from a one-year fixed-rate bond offered by the Post Office , Northern Rock and Barnsley building society , among others, while those willing to tie up their cash for longer can get 4.5%-5% on five-year bonds from Northern Rock , Saga , the AA , Aldermore and ICICI Bank UK . The top cash Isa rate is 2.75%, from Nationwide and Newcastle building society . Back in November 2008, just before the Bank of England embarked on its aggressive rate-cutting, it was possible to get 7.2% on a one-year bond and 7% over two and three years. "While there are many people locked in to what, in hindsight, is an excellent deal, they will soon be joining the hordes of other customers chasing a handful of half-decent accounts," says Hagger.