Mortgage advice will often involve tips on saving for that rainy day, for the unexpected or for the rise in interest rates to cover leaner times. And many people who followed this advice expected the current climate to be just the time when they were glad they followed that mortgage advice and that now would be the time that these savings would see them through.



However, the longer term savers are being quietly hit with interest cuts on their savings while mortgage rates continue to rise. It doesn't take much to see that the gap is growing and even people who had taken precautions against being in financial straits find themselves at the mercy of their bank anyway.

The irony is that new savers are being encouraged by the high street banks in a bid to bring in more revenue for, what is essentially, this huge money making business. The best savings rates are being offered to new savers at seven per cent while long term savers rates were cut to a mere five per cent.

Are they not cutting off their noses to spite their faces? I know that if I saw my bank employing these strategies and not looking after their loyal customers, I would soon be taking my savings elsewhere. It is also a good indication for new savers of how they might be treated in the future.

The same establishments that are cutting savers rates up to half a percent are then offering low interest deals on re-mortgages. However, this is not the way with all banks and some are passing on a reduction in interest rates on loans and mortgages to their customers. They would do well to remember, when they have finished grabbing all they can, that this is still a business and people will not forget how they were treated during the more difficult times. Taking their business elsewhere will be the price banks pay for bad treatment of its customers it the long run.

And it's not just the small saver that is paying. Private banks who have savers regularly investing amounts up to half a million pounds will lose over 2,500 pounds over a period of one year thanks to these unscrupulous moves by bank officials.

For those banks that value their customers a little more than this, they themselves are experiencing problems in the form of administration. For the customers who have taken heed of the savings aspect to their mortgage advice, they are queuing up to invest in a better deal at these banks and are facing waits of up to one month while they wait for their money to be transferred - all the while losing money on their accounts where interest rates have been dropped with no warning.

Of course, this is all good news for new savers. If they have taken good mortgage advice that has secured them one of the new deals that banks are offering to encourage more money into their particular bank then they will have their pick of the new savings accounts also, some of which are offering up to 7.01%. This rate applies to those saving up from 1 pounds but suggestions are that a minimum for the best deal would involve a deposit of 1,000. pounds The rate reduces slightly for those investing 30,000 pounds and good advice suggests that a personal limit be set at 35,000 pounds to make your money work as well as possible. Just take note of how your chosen bank is treating long term customers because it's very possible you will be one of them some day soon.