Nationwide is set to cut interest rates on nearly 90 savings accounts from February 1, following the Bank of England’s base rate reduction in November.
The banking giant will implement changes affecting millions of customers, with rate reductions ranging between 0.1 and 0.26 per cent across various savings products.
The move comes in response to the Bank of England’s decision to lower its base rate from five per cent to 4.75 per cent in November.
While most accounts will see reductions, the Branch Single Access account, will increase from 2.8 per cent to 3.55 per cent.
The changes will affect 89 variable rate easy and instant access savings and cash ISA products
NATIONWIDE BUILDING SOCIETY
The changes will affect 89 variable rate easy and instant access savings and cash ISA products.
Nationwide will lower rates on 55 non-ISA savings accounts, with many accounts currently offering around 2.05 per cent being reduced to approximately 1.8 per cent
The building society has emphasised that despite these adjustments, their savings rates will remain competitive in the market.
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.”
He added: “Following these changes, our savings range will remain competitive.”
The building society reported returning a record £950million in member financial benefit in the first half of this year. Riley emphasised their commitment to savers, stating: “We’ll continue to give savers every reason to put their money with Nationwide.”
Fixed-term savings accounts will not be affected by the changes, as their rates are typically locked in for a set period.
However, easy-access accounts, which allow customers to withdraw money without penalties, will see the most significant changes.
Some accounts will temporarily reduce interest rates during months when withdrawals are made.
Affected products include Branch Easy Access, Cashbuilder Book, Cashbuilder Card, and Direct Easy Access accounts.
The 1 Year Triple Access Online Saver and various “Smart” accounts will experience smaller reductions between 0.1 per cent and 0.25 per cent.
