The reformed Banking Code gives customers very little protection, a bank can cut its rate bit by bit and bury the bad news for the customers Stuart Cliffe, National Association of Bank Customers

Thirteen of the 40 banks and building societies have cut savings rates over the holiday period.

The banking industry has defended its move but consumer groups say the rate cuts are cynically timed.

HSBC, Halifax and Woolwich, which is part of Barclays, are among the banks that have cut savings rates.

Yuletide cuts

Ashleye Sharpe of the Consumers' Association, described the cuts as "cynical" adding that banks and building societies had cut rates at a time when it was least likely to be noticed by customers.

"Banks have taken advantage of the Christmas period and of their customers. Consumers need to take control, check rates every two or three months and move their accounts if needs be," Ms Sharpe told BBC News Online.

The Yuletide cuts come ahead of changes to the Banking Code, due in March.

It recommends that banks should notify all savings account customers in writing when interest rates fall by half a percentage point or more.

At present banks and building societies are obliged only to display rate cuts in their branches.

Bury bad news

However, with savings rates at their lowest levels for a generation cuts as large as half a percentage point are rare.

In fact, many instant access accounts currently pay less than 0.5% interest to savers.

For example, Halifax, the UK's biggest savings provider with 16 million customers, cut its rates by up to 0.15 of a percentage point on four of its accounts - well below the minimum threshold for informing customers of rate changes.

Stuart Cliffe, chief executive of National Association of Bank and Insurance Customers (NABC) told BBC News Online:

"The reformed Banking Code gives customers very little protection, a bank can cut its rate bit by bit and bury the bad news for the customers."