Nationwide to make big change to millions of bank accounts from TODAY – customers should check now
MILLIONS of Nationwide customers will see a major change to accounts take effect today.
The move will hit loyal savers using one of more than 60 accounts.
1
The building society confirmed it is slashing interest rates across the board.
It comes after the Bank of England (BoE) cut the base rate from 4.5% to 4.25% in May.
Central interest rates affect savings rates offered by high street banks, as well as borrowing costs.
When the base rate falls, interest on savings accounts typically comes down too.
Nationwide is now cutting rates on 63 of its savings accounts from easy-access ISAs to children's accounts.
The Branch Smart Limited Child account will drop from 3.05% to 2.85%, on accounts where one or no withdrawals have been made.
Customers with the same account who have made two or more withdrawals won't see their 1.80% interest rate change.
At the same time, those with a Continue to Save account will see their interest rate tumble from 2.10% to 2%.
The Help to Buy: ISA account is also dropping 0.2 percentage points from 3.10% to 2.90%.
If you've got a Branch Flex Saver account and a balance between £0.01 and £9,999, the interest is dropping from 1.85% to 1.60%.
What is the Bank of England base rate and how does it affect me?
If you have £10,000 to £49,999 stashed away, the rate will fall from 1.90% to 1.65%.
You can see the changes on each savings account by using the table above.
Nationwide is not the only provider cutting interest rates on savings accounts following after the change to the base rate.
HSBC announced it will cut rates on eight of its savings accounts from June 3.
And NatWest is also cutting rates on accounts, while Newcastle Building Society is dropping rates on 37 of its personal savings accounts from June 5.
How to get the best savings rate
If your interest rate drops, it's time to take action and move your money if you can get a better return elsewhere.
Use price comparison sites such as moneysavingexpert.com or moneyfactscompare.co.uk to browse the best savings accounts on the market.
Check whether the headline savings rate on offer come with bonus rates which are only available for a set period after you open them.
Make a note to switch when those bonus rates fall off.
Others will only offer you a specific interest rate if you make a limited number of withdrawals each year.
Go over this withdrawal limit and the interest rate can plummet.
Some savings accounts offer additional perks which can make them more worth your time too.
How you can find the best savings rates
If you are trying to find the best savings rate there are websites you can use that can show you the best rates available.
Doing some research on websites such as MoneyFacts and price comparison sites including Compare the Market and Go Compare will quickly show you what's out there.
These websites let you tailor your searches to an account type that suits you.
There are three types of savings accounts fixed, easy access, and regular saver.
A fixed-rate savings account offers some of the highest interest rates but comes at the cost of being unable to withdraw your cash within the agreed term.
This means that your money is locked in, so even if interest rates increase you are unable to move your money and switch to a better account.
Some providers give the option to withdraw but it comes with a hefty fee.
An easy-access account does what it says on the tin and usually allow unlimited cash withdrawals.
These accounts do tend to come with lower returns but are a good option if you want the freedom to move your money without being charged a penalty fee.
Lastly is a regular saver account, these accounts generate decent returns but only on the basis that you pay a set amount in each month.
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