Nationwide, savings rates on the most popular accounts increase by just 0.1% despite rising mortgage rates for the THIRD time in less than a month
- Nationwide raises rates for all direct access accounts by no more than 0.1%
- Bank of England is expected to raise key interest rates from 4.5% to 5% tomorrow
- One expert believes this will make Nationwide’s gesture look “ridiculous.”
Nationwide Building Society today announced increases to some of its most popular savings deals – but many customers may find themselves shortchanged tomorrow.
That’s because these tiny increases in savings rates have been completely outpaced by recent increases in mortgage rates, despite both being the result of the Bank of England’s rising base rates.
None of the savings rate hikes revealed by Nationwide exceed 0.1 percentage point.
Still, the Bank of England is expected to announce a key interest rate hike from 4.5% to 5% tomorrow – a move that one expert says will make Nationwide’s gesture “ridiculous”.
ridiculous? Nationwide will increase the rate for all its direct access accounts by up to 0.1 percentage point.
This also comes at a time when Nationwide has raised mortgage rates three times in less than a month.
Last week, the mutual said it would raise rates on its range of new fixed-rate home loans by up to 0.7 percentage points.
Three weeks ago, the lender increased these rates by a maximum of 0.45 percentage point, followed by an increase to a maximum of 0.2 percentage point two weeks ago.
James Blower, founder of the savings website Savings Guru, says: ‘As the base rate is almost certain to rise to 5 percent tomorrow, the increases of just 0.1 percentage point on what are some of Nationwide’s most popular products seem particularly ludicrous.
“I’m sure their mortgage rates will rise much faster than this, and much faster.”
What is changing in the Netherlands?
Nationwide will increase the rate on all of its instant access savings accounts by up to 0.1 percentage point.
This includes the Instant Access Saver, Instant Isa Saver and Cashbuilder, which will increase to 1.35 per cent or 1.4 per cent depending on the amount saved at select tiers of £49,999.
Since the best instant access deals are all currently paying 4 percent or more, savers may want to consider their options.
– View the best instant savings rates here.
In terms of limited access range, previous and current issues of Nationwide’s Triple Access Online Isa and Triple Access Online Saver will see increases of 0.1 percent, with these products now paying 3.3 percent.
Existing customers saving on the mutual insurer’s Loyalty Saver, Loyalty Isa and Loyalty Single Access Isa accounts will also see rates increase by 0.1 percent to 3.3 percent.
Tom Riley, director of retail products at Nationwide Building Society, said: ‘As a mutual insurer, we always want to support savers and pay the best rates we can sustainably afford. That’s why we’re increasing rates for some of our most popular variables. review accounts.’
While it may raise mortgage rates much more than savings rates, Nationwide is paying out £100 to selected customers through its new Fairer Share scheme, after huge profits.
That said, mAll Nationwide customers are disappointed, as less than a quarter of the 16 million members qualify.
But those who do will get £100 between June 13 and 30 – and joint account holders can get £100 each.