Nationwide Building Society is today announcing a number of rate changes to its savings accounts and FlexOne current account.
The changes, effective from 1 February 2022, will see the Society increasing rates by at least the 0.15% Bank Rate rise on children’s and regular savings accounts, the Society’s Help to Buy ISA, as well as its loyalty accounts.
Britain’s biggest building society is making these rate changes to ensure it is balancing its support for savers with offering value to borrowers and investing in vital services for members – from branches and telephony to digital. Nationwide continues to keep all its savings rates under review, ensuring they remain competitive and relevant to the varying needs of the UK’s savers.
Savings and FlexOne changes:
One of the best ways to help kickstart a savings habit is to encourage people to put money away when they are young, which is why the Society is passing on an above Bank Rate increase of 0.25% to all children’s savings accounts. These include Future Saver (1.25% AER1), Junior ISA (1.25% AER), Child Trust Fund (1.25% AER) and Smart Limited Access (0.75% AER). At the same time, the credit interest rate on Nationwide’s FlexOne youth current account will rise by 0.15% to 0.25% AER.
In order to encourage current account members to save regularly, the Society will also increase the rate on its Flex Regular Saver by 0.50% to 2.50% AER - a rise of more than three times the Bank Rate increase, therefore continuing to offer a highly competitive rate. The account remains available for current account members.
To support those at the beginning of their savings journey the Society will increase the rate on its Start to Save account by 0.25% to 1.25% AER. And Nationwide is doing what it can to help those saving for a deposit on their first home by increasing the rate on its Help to Buy ISA by 0.25% to 1.25% AER.
The rates on Loyalty Saver, Loyalty ISA and Loyalty Single Access ISA will rise in line with the Bank Rate by 0.15% to 0.40% AER.
Savers signed up to Nationwide’s SavingsWatch service will be notified of any rate changes that impact them via their preferred communication – such as text or email. The service also highlights any new products that the Society launches in which they may be interested.
Nationwide has continued to offer competitive interest rates on deposits. Over the last five years it has rewarded members with around £2.9 billion in additional value2 and it remains committed to paying the best rates the Society can sustainably afford.
In recent months, the Society’s average deposit3 rate has been two-thirds higher than the market average4. Following the Bank Rate change, the Society expects to continue paying more than the market average once the rest of the industry announces its changes.
Tom Riley, Director of Banking & Savings at Nationwide Building Society, said: “We are announcing the changes to savings and our children’s current account to give our members certainty about what their rate is going to be. As one of the first major savings providers to announce its changes, we’re demonstrating our commitment to savers, particularly children and regular savers, such as those saving for their first home.
“We continue to focus on providing a range of competitive savings products to our members. 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.”
A full list of the products and rate changes can be found below in Notes to Editor.
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