Following the Bank of England’s decision to cut the base rate to 4.75% back in November last year, Nationwide has confirmed some major changes to the majority of its savings accounts
Nationwide has cut interest rates on more than 20 different accounts, in a huge blow to Brits. The move, which means customers will see a smaller return on the money they’ve stashed away, comes after the Bank of England’s decision last year to cut the base rate to 4.75 per cent from 5.0 per cent.
The BoE’s base rate, also known as a bank rate, is what it charges other lenders to borrow money, consequently influencing what they charge customers for loans, mortgages, and the interest rate they offer for savings accounts. This moves up and down over time to control UK inflation (the increase in the price of a product over time). As a result, Nationwide’s savings rate reductions will come into effect on 1 February 2025. The banking giant says following the changes it remains ‘committed to offering a competitive alternative to the high street banks that appeals to all types of savers’.
There are a few accounts that won’t be affected by the reduction, including the Flex Regular Saver account which will remain at 6.50% AER/gross a year (variable). Customers can make up to three withdrawals during the 12 month account term while still getting the 6.50% interest – but if you make any more withdrawals this will drop to 1.75% AER. Customers with this account are limited to putting away £200 each month, so this isn’t a good account for those wanting to save larger amounts.
The children’s FlexOne Saver account will also stay at 5.00% AER/ gross a year (variable). This account is designed for those aged 11-17 wanting to open an account they can continue to use up until age 23. There is no penalty for withdrawals but has a save-limit of £5,000. This savings account is for just our FlexOne current account member
“We have worked hard to limit the impact of the recent rate cut on our savers and have taken the decision to hold rates on some of our most popular accounts, such as our leading Flex Regular Saver,” said Nationwide’s Director of Retail Products Tom Riley. “Following these changes, our savings range will remain competitive. We returned a record £950 million in member financial benefit in the first half of this year and we’ll continue to give savers every reason to put their money with Nationwide.”
Want the latest money-saving news and top deals sent straight to your inbox? Sign up to our Money Newsletter
Nationwide slashes interest rates – full list
Regular Savings
- Help to BUY ISA – 0.25%
- Continue to Save – 0.20%
Children’s
- Child Trust fund/ Smart Junior ISA – 0.25%
- Smart limited access – 0.25%
- Future Saver (with main current account) – 0.25%
- Smart Saver – 0.25%
- Smart – 0.25%
Limited Access
- 1 Year Triple Access Online Saver (all issues) – 0.10%
- 1 Year Triple Access online ISA (all issues0 – 0.10%
- Loyalty Single Access ISA – 0.10%
- Limited Access Saver/ Limited Access Online Saver – 0.20%
- e-Savings Plus – 0.20%
- Triple Access Saver/ Triple Access ISSA – 0.20%
Instant Access
- Flex Instant Saver – 0.25%
- Loyalty Saver / Loyalty ISA – 0.10%
- Flexclusive ISA/ Flexclusive Saver * – 0.15% – 0.25%
- Instant Access Saver 10 – 0.15%
- Instant access savings accounts (eg Instant Access Saver, Instant iSA Saver, CashBuilder)* – 0.15% – 0.25%
*Flexclusive Saver / Flexclusive ISA: £0-£9,999.99 from 2.10% to 1.85%; £10K-£49,999.99 from 2.15% to 1.90%; £50K+ from 2.20% to 2.05%.
*Instant access savings accounts: £0-£9,999.99 from 2.05% to 1.80%; £10K-£49,999.99 from 2.10% to 1.85%; £50K+ from 2.15% to 2.00%.
Do you have a story to share? Email us at yourmirror@mirror.co.uk for a chance to be featured
