Banks accused over accounts

BANKS have been accused of ripping off customers by cutting lucrative interest rates on Special Savings Incentive Accounts.

Hundreds of thousands of savers took out SSIAs with variable interest rates of up to 4.25% when the scheme started earlier this year. However, it has now emerged that SSIA deposit rates have fallen by a total of 1.5% in a period when interest rates generally came down by just 0.5%.

Labour's consumer affairs spokeswoman Kathleen Lynch said it was clear the banks were steadily reducing interest rates on SSIA accounts and denying customers what they were entitled to.