Savings rates edge closer to 5% as Nationwide launch new deals
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Savings Rates Close to 5% as Nationwide Building Society Launches New Best Fixed Rate Buying Contracts
- Nationwide launches three new fixed-rate deals that pay between 4% and 4.75%
- The construction company triple access cash Isa, which pays 2%, is a new best buy
- The health insurance company also increased its ‘easy-access’ account from 1.75% to 2.1%
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Nationwide Building Society has increased rates on a number of savings accounts, including a new fixed-rate best-buy deal that pays a top 4.75 percent.
The mutual, home to more than 16 million members, is raising the rate on its one-year triple access account and one-year triple access cash Isa deal.
It is also launching three new fixed-rate deals. The most striking is it three-year savings agreement pays 4.75 percent is a new best buy, skipping the next best deal by 0.14 percentage points.
Rising: Savings Rates Approaching 5% as Nationwide Launches New Best Buy Deals
Someone who deposits £20,000 in this account over three years can expect to earn £2,987 in interest over the three-year period.
The new rate on the current edition of its ‘easy-access’ one year triple access online saver is now a very competitive 2.1 percent for 12 months.
This ranks it among the highest paying, easily accessible deals on the open market, surpassed only by Al Rayan Bank’s 2.35 percent deal and the Yorkshire Building Society’s 2.5 percent deal – although the latter is only on deposits to £5,000.
To be one year triple access cash Isa is even more competitive, paying 2 percent – it’s currently a best buy in terms of easily accessible Isa cash deals.
Both triple access deals address the same problem. This means that savers who signed up at the old rate of 1.75 percent also benefit.
As the names suggest, both accounts allow three withdrawals over the 12 month term.
On subsequent withdrawals, the interest rate will return to 0.3 percent for the remainder of the period.
Savers should be aware that the accounts will automatically switch to one of Nationwide’s instant access accounts after 12 months.
Currently, these only pay 0.25 percent, so savers would be wise to reassess their options in a year’s time.
For savers willing to give up access to their money for a year or more in exchange for higher returns, Nationwide’s fixed income deals are also among the best on offer right now.
The one-year fix pays 4 percent, the two-year fix pays 4.5%, while the three-year fix pays a market-leading 4.75 percent.
Savers can get started with as little as £1 and deposit up to a maximum of £5 million. FSCS protection is up to £85,000 per person.
Savers benefit from a fixed interest rate for the entire term, but cannot access their funds or regularly deposit funds into the account during that time.
Someone who pays £10,000 for the one-year deal that pays 4 percent would make £400 after a year. Someone putting the same amount into the two-year deal of 4.5 percent would earn £920 in interest after two years.
| Account type (min. investment) | Rate | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| A YEAR | ||||||||||
| Melton BS (£10,000+)(8) | 4.20 | |||||||||
| Secure Trust Bank (£1,000) | 4.20 | |||||||||
| investec (£5,000) | 4.15 | |||||||||
| Atomic Bank (€50+) | 4.11 | |||||||||
| rural (£1+) | 4.00 | |||||||||
| Shawbrook Bank (£1,000+) | 4.00 | |||||||||
| TWO YEARS | ||||||||||
| SmartSave Bank (£10,000+) | 4.56 | |||||||||
| Safe trust (£1,000+) | 4.55 | |||||||||
| Cynergy Bank (£10,000+) | 4.50 | |||||||||
| rural (£1+) | 4.50 | |||||||||
| THREE YEARS | ||||||||||
| rural (€ 1) | 4.75 | |||||||||
| SmartSave Bank (£10,000) | 4.61 | |||||||||
| Cynergy Bank (£10,000+) | 4.60 | |||||||||
| (1) Fixed on December 13, 2023 | ||||||||||
Tom Riley, director of banking and savings at Nationwide, said, “Our savings offering continues to evolve to meet the needs of our members both today and tomorrow.
“The increases we are making in the rates for the latest issue of our triple access accounts mean that those who have all those accounts will benefit without having to do anything.
‘We also understand that there are plenty of savers who like to lock up their money for a certain period of time. That is why we offer very competitive rates on our fixed-income online bonds.’
Earlier this week, it raised its offer to switch bank accounts to a market-leading £200.