Nationwide slashes savings rates after US bank’s December cut
Nationwide Building Society will lower interest rates on 36 of its savings accounts from 10 February. The move follows the US bank's decision to cut its base rate from 4% to 3.75% in December. Customers with regular savings, children’s accounts, and easy-access products will all see reductions.
Most rate cuts will be smaller than the full 0.25% reduction made by the US bank. Help to Buy ISAs, child trust funds, and junior ISAs will face a 0.25% drop. Flex Instant Saver accounts, Reward Saver accounts, and Triple Access easy-access accounts will also be affected. Single access accounts, limited access savings, and ISAs will see similar changes.
Nationwide will, however, raise the rate on its five-year fixed-rate bond and Isa to 4%. This option is available for customers willing to lock their money away for a longer period.
The decision to adjust rates typically comes from the executive board or risk and treasury committees, led by CEO Debbie Crosbie. Customers with impacted accounts are advised to review their details and explore better deals, as Nationwide does not offer loyalty benefits for existing savers. Independent best-buy tables, such as those from This is Money, can help find more competitive rates.
The changes take effect on 10 February, with most accounts seeing smaller reductions than the US bank's full cut. Customers looking for higher returns may need to switch providers or consider fixed-term options. Nationwide’s five-year fixed-rate bond and Isa now offers 4% for those prepared to commit their savings long-term.
