While rates on the best saving accounts for both fixed and easy access have been creeping up, there has been little activity on regular savings products. But as the savings markets continue to heat up, Nationwide has come in with a new deal providing those looking to save a set amount each month a top rate of 8% (AER) on regular savings.
This is now the top rate on the market for anyone looking to stash regular cash away each month - and better still, right now, for anyone switching to a Nationwide current account can also bag a £200 switching bonus, which is also one of the top switching deals on the market right now.
Nationwide has already hiked its savings rates five times this year. and introduced other incentives over the past year, like its 5% cashback on grocery shopping and the £100 boost in Nationwide’s profit sharing scheme, now known as the Nationwide Fairer Share Scheme.
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We explain how Nationwide's regular saver account works and who is eligible.
Who can get Nationwide’s 8% regular savings account?
To open the Nationwide 8% Flex Regular Saver, you will need to have a Nationwide current account. The accounts that qualify are: FlexPlus, FlexDirect, FlexAccount, FlexStudent, FlexGraduate, FlexBasic or FlexOne. It is open to both existing and new Nationwide customers.
The 8% regular saver account is open to both existing and new customers, though you can only have one regular saver account at any given time.
You must also be a UK resident aged 16 or over, have a valid email address and be willing to manage the regular saver account online.
How does Nationwide’s regular savings account work?
You can open the account with as little as £1 and your first payment must be made into the account within 28 days of opening the account.
The maximum you can pay into the account is £200 a month.
The 8% (AER) rate is variable meaning Nationwide can increase the rate or reduce it at any given time.
The 8% is also only available for 12 months, after which your cash is moved to the Nationwide instant access account.
It’s also important to note the rate is also only available as long as you do not make more than three withdrawals in the 12 month period. If you make a fourth withdrawal, the interest rate drops to 2.15 AER (variable).
Nationwide will work out the interest daily. If you maximised the £200 monthly allowance, totalling £2,400, and made no withdrawals, you’d be left with a balance of £2,504 after 12 months.
How does this Nationwide’s regular saver compare to the rest of the market?
The Nationwide Flex Regular Saver is currently the best rate available, beating Skipton Building Society’s 7.5% AER rate and First Direct’s 7% AER rate*.
But, both Skipton and First Direct allow you to put away more each month - you can save £300 a month with First Direct and £250 a month with Skipton.
While First Direct does require you to stash at least £25 a month into the account each month, Nationwide does not have a minimum monthly deposit requirement and may give you more flexibility over how you save. There is no minimum deposit with Skipton either.
While regular savings are great for those who want to put a small amount away each month, if you have more to save and want easy access you can earn 5.1% AER with Leeds Building Society.
And if you can lock your cash away for 12 months, fixed savings accounts are offering more than 6% - right now you can earn 6.2% with NS&I.
*When you sign up via this link, we may earn an affiliate commission from this deal
Vaishali graduated in journalism from Leeds University and she has experience working with the likes of Leicester Mercury, Inews and The Week. She also comes from a marketing background, where she has done copywriting and content creation for businesses.
Currently writing about all things personal finance, Vaishali is passionate about finding the best deals around, whether it's the best credit cards or the cheapest personal loans, as well as sharing top money hacks to help people save and better manage their money.
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