Nationwide has launched four new savings options including ‘market-leading’ interest rate
Martin Lewis advises on savings accounts and premium bonds
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The building society announced on Friday it was launching a new issue of its One Year Triple Access Online ISA which will pay a one percent AER/tax-free (variable) for 12 months. At the same time, Nationwide has introduced another issue of its One Year Triple Access Online Saver which will be a hiked rate of one percent. Both accounts can be managed online or via the building society’s mobile app with a minimum operating balance of £1.
Each savings product will allow three withdrawals for customers over a 12-month period. Any withdrawals past this amount will return to 0.10 percent interest rate.
At the end of the 12 months, the savings accounts will be automatically switched to one of Nationwide’s Easy Access products.
Furthermore, the financial institution is promoting new issues of its one-year fixed rate ISAs, Bonds and Online Bonds plus three and five-year Online Bonds.
These increased rates are available for balances of £1 or more. Monthly interest options are also available to customers.
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The full list of Nationwide’s hiked fixed rate products are as follows:
- One Year Fixed Rate ISA – 1.10 percent AER/tax-free (fixed)
- One Year Fixed Rate Bond/Online Bond – 1.10 percent AER/gross per annum (fixed)
- Three Year Fixed Rate Online Bond – Two percent AER/gross per annum (fixed)
- Five Year Fixed Rate Online Bond – 2.10 percent AER/gross per annum (fixed)
Tom Riley, the director of Banking and Savings at Nationwide Building Society, said: “ISAs remain an important product for many savers, as interest earned on a cash ISA doesn’t count towards your Personal Savings Allowance.
“Our new Triple Access Online ISA will offer a market-leading rate from a brand savers know and trust.
“For those who want to save outside of an ISA, we are also increasing the rate on our Triple Access Online Saver.
“We like to give savers a choice of fixed rates, which is why we are also launching a new range of one, three and five-year fixed rate products.”
Last month, the Bank of England’s Monetary Policy Committee (MPC) raised the country’s base rate to one percent.
This represents the fourth consecutive rate hike in a row by the bank and is the highest level since 2009.
Banks and building societies have received criticism from financial experts for not passing down these consecutive interest rates to their savings products.
However, personal finance analyst Alice Haine from Bestinvest warned that it would take these institutions “to pass on the uplift” to their customers.
Ms Haine explained: “For savers, an interest rate rise can only be a good thing, but they may need to be patient.
“Savings rates will tick up very slowly and very gradually in the coming weeks and months as banks and building societies can sometimes take their time to pass on the uplift.
“Savings rates could also get a leg up from the winding down of quantitative easing.
“However, despite rising rates, when adjusted for very high levels of inflation, the real returns on cash savings are deeply negative and so hoarding large amounts of cash for long-periods of time is a sure way to get worse off.”
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