Nationwide announces it’s upping savings rates
Nationwide raises savings rates for the second time in two weeks: Here’s how they stack up against the rest of the competition
- As of July 14, all of its direct access deals will increase by up to 0.8 percentage points
- On August 1, Triple Access and Loyalty deals are up 0.2 percentage points
- Nationwide is also launching some fixed income bonds and money ISAs
Nationwide Building Society today announced further increases to some of its most popular savings deals.
It is the second time in two weeks that Nationwide has announced changes to its savings deals.
On June 21, it revealed a paltry 0.1 percentage point increase for a number of deals. Since then, the Bank of England has raised its base rate from 4.5% to 5%.
Nationwide Building Society today announced further increases to some of its most popular savings deals.
Starting July 14, all instant access offers will increase by up to 0.8 percent. This includes the Instant Access Saver, which increases from between 1.35 percent and 1.5 percent to between 2.15 percent and 2.25 percent, depending on the amount saved.
Existing customers saving on their Loyalty Saver, Loyalty Isa or Loyalty Single Access Isa account will see rates increase by 0.2 percentage point to 3.5 percent.
From August 1, the Company’s Triple Access Online Isa and Triple Access Online Saver will also increase by 0.2 percentage points, with these products paying 3.5 percent.
These deals allow depositors to limit depositors to three withdrawals per year. More than this and the rate plummets to 1.35 percent.
As of today, the mutual has also launched a number of fixed rate savings deals.
This includes a one-year fixed-rate bond that pays 5.1 percent and a one-year fixed-rate Isa deal — which also pays 5.1 percent.
The accounts can all be opened online or through the banking app with just £1. There’s also a branch version of the deal for those who prefer to open an account in a branch nationwide.
How do they compare?
In terms of easily accessible savings rates, Nationwide’s Instant deal will fall woefully short of the best rates.
The best easily accessible deals on the market are currently offered by The Family Building Society and pay 4.35 percent. More than 20 providers now pay 4 percent or more.
Even after the 0.8 percentage point increase, Natiownide’s standard instant access will pay about half the rate of top buys.
In fact, the 2.15-2.25 percent rate is actually worse than the average rate paid across the market, which is 2.43 percent, according to Moneyfacts.
The Loyalty Saver deals and Triple Access accounts look a little more competitive at 3.5 percent.
Someone who deposits £10,000 into one of these accounts could earn £350 over the course of a year, if rates stay the same.
The Isa versions of these accounts are likely to have the greatest appeal, as the best buy Isa accounts often pay less than the best buy taxable accounts.
The best available rate is currently offered by Paragon Bank. The Triple Access cash Isa deal pays 4.05 percent.
Someone who deposits £10,000 with Paragon instead of Nationwide’s Triple Access Isa could earn £55 more in interest over the course of a year.
– View the best Isa rates here
Currently, the one-year fixed rate bond of 5.1 percent lags market-leading rates that pay out around 6 percent.
– Check out the best fixed rate savings deals
However, the one-year permanent Isa is almost the market leader. It is beaten only by Coventry Building Society paying 5.3 per cent, Zopa Bank paying 5.21 per cent and Charter Savings Bank paying 5.2 per cent.