Nationwide to increase rates on many savings products

Among the rises, the society is increasing rates on children’s and regular savings accounts, its Help to Buy Isa and loyalty accounts.

Vicky Shaw
Thursday 27 January 2022 14:29
Nationwide Building Society will increase rates on a range of savings accounts by at least 0.15 percentage points (Paul Faith/PA)
Nationwide Building Society will increase rates on a range of savings accounts by at least 0.15 percentage points (Paul Faith/PA)

Britain’s biggest building society will boost rates on a range of savings accounts by at least 0.15 percentage points.

Nationwide Building Society’s savings shake-up from February 1 will include rate rises on children’s and regular savings accounts, the society’s Help to Buy Isa as well as its loyalty accounts.

The Bank of England base rate increased by 0.15 percentage points to 0.25% in December 2021, increasing costs for some borrowers.

In general, rate rises do not always filter through into better deals for savers.

Nationwide said it is passing on an above bank rate increase of 0.25 percentage points on children’s savings accounts.

One account to see a phenomenal rate rise is ideal for savers looking to start up a nest egg, as the Flex Regular Saver will pay a highly competitive 2.50%

Rachel Springall, Moneyfacts.co.uk

To help encourage current account members to save regularly, the society will also bump up the rate on its Flex Regular Saver by 0.50 percentage points – to 2.50%.

The Flex Regular Saver allows someone to deposit up to £200 each month for a year and make up to three withdrawals during the 12 month-term without impacting the interest rate.

According to calculations from Moneyfacts.co.uk, a saver putting in £100 per month for a year would end up with around £16 in interest with the new 2.50% rate compared with around £13 previously.

Someone putting in £200 per month would gain about £32 in interest with the new rate, compared with £26 under the old rate.

Nationwide will also increase the rate on its Start to Save account by 0.25 percentage points to 1.25%.

Its Help to Buy Isa rate will increase by 0.25 percentage points to 1.25%.

Tom Riley director of banking and savings at Nationwide Building Society, said: “In recent months our average deposit rate has been two-thirds higher than the market average, but we also need to balance our savings rates with the need to ensure we provide good value for our borrowers and continue to invest in services that are important for our members.”

The move could help some savers dealing with sharp increases in their living costs, although with Consumer Prices Index (CPI) inflation running at 5.4% they still face the real value of their cash being eroded.

Rachel Springall, a finance expert at Moneyfacts.co.uk, said it was “fantastic” to see Nationwide passing the base rate rise on to its loyal savers.

She said: “One account to see a phenomenal rate rise is ideal for savers looking to start up a nest egg, as the Flex Regular Saver will pay a highly competitive 2.50%.

“Those savers who are getting a raw deal from their bank may wish to consider switching, as there is no guarantee they will see base rate passed onto them in the weeks to come.”

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

By clicking ‘Create my account’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in