The Woolwich admits it is feeling the pressure from new players offering savings rates above the bank base rate.
In a statement the bank said it has suffered a net outflow of deposits as a result from competition from new entrants
The former building society said it had attracted customers to its fixed-rate savings accounts, but not enough to compensate for new competition such as Egg and Standard Life Bank.
Woolwich finance director Richard Meddings said: “If you are not willing to go to loss-leading rates it is really quite difficult not to have outflows from you savings base.”
Woolwich Media Relations Manager Ann Pilkington, said: “It's not just Egg we are talking about we've said felt the pressure from new entrants. We are talking about a number of new providers including the supermarkets.”