Nationwide cuts interest rate on 10 fixed savings accounts – are you affected? | Personal Finance | Finance newsbhunt


Nationwide Building Society has cut the rates on a range of fixed rate savings account.

They have launched new issues of its Fixed Rate Online Bonds, Fixed Rate Branch Bonds and Fixed Rate ISAs.

The previous issues with the higher interest rates have been removed and can no longer be opened.

These new issues offer an interest rate of up to 4.9 percent – having previously paid up to 5.2 percent.

With the interest rate sitting at 5.25 percent, savers are urged to shop around and secure the best rate they can, especially if they’re locking their money away from some time. Many banks offer savings account paying over five percent.

The new interest rates are:

  • 1 Year Fixed Rate Online Bond – 4.90 percent AER
  • 1 Year Fixed Rate Branch Bond – 4.90 percent AER
  • 1 Year Fixed Rate ISA – 4.90 percent AER/tax-free
  • 2 Year Fixed Rate Online Bond – 4.75 percent AER
  • 2 Year Fixed Rate Branch Bond – 4.75 percent AER
  • 2 Year Fixed Rate ISA – 4.75 percent AER/tax-free
  • 3 Year Fixed Rate Online Bond – 4.60 percent AER
  • 3 Year Fixed Rate Branch Bond – 4.60 percent AER
  • 5 Year Fixed Rate Online Bond – 4.50 percent AER
  • 5 Year Fixed Rate Branch Bond – 4.50 percent AER

Nationwide customers looking to get more for their money could opt for Flex Regular Saver as this offers the highest interest.

Customers can open this account online, and save up to £200 a month for 12 months.

Savers will benefit from eight percent AER/gross a year (variable) interest rate on their cash.

However it should be noted, after four withdrawals the interest rate reduces to 2.15 percent AER/gross a year (variable) for the rest of the term.

Rachel Springall, Finance Expert at Moneyfacts, said: “There are expectations for interest rates to drop in the months ahead, so fixed savings rates could fall further before the year is over.

“However, there are still some providers enhancing their fixed rate savings deals, and challenger banks could go against the trend and increase their rates if they need to entice deposits to fund their future lending.”



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