Nationwide hikes interest rates across 27 savings accounts

Martin Lewis says 'more people' will be paying tax on savings

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Bank of England Base Rate increases have meant better news for savers, as high street bank and building society accounts have generally been reflecting the raised interest rates. While no account currently beats the UK’s soaring inflation, Nationwide has announced today that it will introduce further rate increases on all of its off-sale variable rate savings accounts.

According to Nationwide, its average deposit rate has been “at least 70 percent” higher than the market average over recent months.

The latest rate increases come as part of its “ongoing commitment” to paying the best rates it can sustainably afford while “taking into account the long-term interests of the membership” as a whole.

The changes, most becoming effective from December 1, 2022, will see the Society increasing interest rates by up to 1.5 percent.

More than 27 accounts will see a rate boost, including the Society’s Start 2 Save account, Flexclusive Regular Saver, Nationwide’s Help to Buy ISA, and its Instant Access savers.

The Society’s Start to Save 2 account will increase for new and existing members by 1.50 percent to an an Annual Equivalent Rate (AER) of five percent from December 1, 2022.

Those saving regularly in Flexclusive Regular Saver will see rates increase by 0.5 percent to a four percent AER.

Those saving for a house deposit will see a boost with Nationwide’s Help to Buy ISA now paying a three percent AER, up by 0.75 percent.

For younger savers, Nationwide is increasing rates on its children’s accounts by up to 0.5 percent. For example, Child Trust Fund, Junior ISA and Future Saver will all now pay a three percent AER, while the Smart Limited Access will offer 2.5 percent AER.

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Members saving in a Loyalty Saver, Loyalty ISA, and Loyalty Single Access ISA accounts will see the AER rise by 0.5 percent up to 2.5 percent.

On the limited access range, previous issues of the Society’s Triple Access Online ISA (11-13) and Triple Access Online Saver (12-14) will see AER increases of between 0.4 percent and 0.5 percent, with these products now paying attractive 2.5 percent rates.

All instant access accounts, including Instant Access Saver, Instant ISA Saver and the Cashbuilder, will see rates rise between 0.4 percent and 0.45 percent, up to either 0.75 percent, 0.8 percent, or a 0.9 percent AER, depending on the balance.

Rate boosts will also take place across the Society’s current issues of its 1-Year Triple Access Online Saver and 1-Year Triple Access Online ISA to 2.5 percent from November 18.

The rate on Flex Instant Saver (Issue 2), available exclusively for current account members, will also increase to 2.25 percent.

Savers signed up to Nationwide’s SavingsWatch service will be notified of any rate changes impacting them and highlighting any new products the Society launches.

On the news, Tom Riley, director of retail products at Nationwide Building Society, commented: “We remain committed to supporting savers, which is why we have increased rates on all our off-sale savings accounts.

“In recent months, our average deposit rate has been at least 85 percent higher than the market average, demonstrating our mutual difference.”

Mr Riley continued: “Helping people develop a savings habit, particularly at this time, is core to the ethos of a building society.

“For this reason, one of our biggest increases was made to our regular savings accounts, which we hope will encourage those that can put money away to do so.”

The full list of updated accounts with respective new rates include:

Regular savers

Start to Save 2: Five percent
Help to Buy: Three percent
Start to Save: Three percent
Flex Regular Saver: Four percent
Continue to Save: 1.75 percent

Children’s accounts

Child Trust Fund: Three percent
Junior ISA: Three percent
Flex One Regular Saver: Three percent
Smart Limited Access: 2.5 percent
Futuer Saver: 2.5 percent
Smart Saver: 1.75 percent
Smart/Smart 2: 1.75 percent

Loyalty savers

Loyalty Saver: 2.5 percent
Loyalty ISA: 2.5 percent
Loyalty Single Access ISA: 2.5 percent

Limited access savers

1 Year Triple Access Online Saver (Issues 5,9, and 11-14): 2.5 percent
1 Year Triple Access Online ISA (Issues 10-13): 2.5 percent
Single Access Saver: 2.5 percent
Single Access ISA 3: 2.5 percent
Limited Access Saver: 1.25 percent
eSavings Plus: 1.25 percent
Triple Access Branch 1: 1.5 percent
Triple Access Branch 2: 1.5 percent

Instant access savers

Flex ISA and Flex Saver: 1.3 percent – 1.5 percent
Instant Access Saver (Issue 1): 1.3 percent
Instant access savings accounts (e.g. Instant Access Saver, Instant ISA Saver, Cashbuilder): 0.75 percent – 0.9 percent

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