Nationwide to cut interest rates on more than 20 savings accounts
Nationwide Building Society is to slash the interest rates on several savings accounts. We list the accounts affected and when the changes will take place
Nationwide has remained popular for other incentives such as its £100 Fairer Share bonus. But, for those hunting down the best rates, what do the changes mean for you?
What are Nationwide's new rates?
Nationwide will reduce rates by between 0.10 and 0.25 percentage points next month, on 1 February, 2025.
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk said it was a “somewhat inevitable move” as providers catch up with the Bank Rate cuts in 2024, adding: “This should spur consumers to review their pots and switch if their loyalty is not being repaid”.
With the Flex Instant Saver set to be reduced, savers who want a flexible account are reminded they can find higher returns on savings elsewhere, but they should watch out for upcoming rate changes.
Springall said: “Savers need to check the terms of any new account carefully, as some providers are still due to review their rates next month, which includes the market-leading easy access account from Chase which currently pays 5% AER.”
Behind Chase, the best easy access savings account which is open to everyone right now is GB Bank’s Nu Wealth Easy Access Account which pays a 4.86% AER variable rate. This includes a bonus rate of 0.46% for the first 12 months.
Atom Bank's Instant Saver Reward pays 4.85% AER variable, if you don't make a withdrawal in a month. It'll drop to 3.25% AER variable for the month upon withdrawal.
Which savings accounts are affected by Nationwide’s interest rate cuts?
Among the changes, the Flex Instant Saver will be cut from 3.25% to 3%, while the 1 Year Triple Access Online Saver will reduce from 4.1% to 4%.
The regular savings accounts such as Flex Regular Saver 3 (which pays 6.5%), Start to Save (5.5%) and FlexOne Saver (5%) will not be changed.
Tom Riley, Nationwide’s director of retail products, said: “We have worked hard to limit the impact of the recent rate cut on our savers and have taken the decision to hold rates on some of our most popular accounts, such as our leading Flex Regular Saver.”
Below, we list a range of Nationwide’s savings products, including more than 20 accounts set to see an interest rate cut.
The Flexclusive Saver / Flexclusive ISA rate on balances from £0 to £9,999.99 will reduce from 2.1% to 1.85%. The rate offered on the portion from £10,000 to £49,999.99 will be cut from 2.15% to 1.9% and for savings of £50,000 or more, it will reduce from 2.2% to 2.05%.
The rate on instant access savings accounts, such as Instant Access Saver, Instant ISA Saver, and CashBuilder, will be cut from 2.05% to 1.8% on balances from £0-£9,999.99. It will drop from 2.1% to 1.85% on savings of £10,000 to £49,999.99 while portions of savings from £50,000 will earn 2% - down from 2.15%.
The new Issue of the One Year Triple Access Online Saver paid 4% AER/gross per annum (variable) for 12 months, as did the tax-free One Year Triple Access Online ISA.
They previously paid 4.1% (variable) before they were pulled from sale on 15 December.
From February, all issues of these accounts will pay the 4% rate.
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Jessica is a financial journalist with extensive experience in digital publishing.
She was previously Digital Finance Editor at GB News and Personal Finance Editor at Express.co.uk. She enjoys writing about savings, pensions and tax, and is passionate about promoting financial education.
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