Nationwide Building Society has launched a range of new cash savings accounts for adults and children. How do they stack up?
For adults, Nationwide has launched new issues of fixed rate bonds which can be opened in branch or online, as well as ISAs. All require a minimum £1 balance to get you started.
The 10 new savings accounts pay between 4.50% and 4.90% AER and include the following:
- 1 Year Fixed Rate Online Bond: 4.90% AER
- 1 Year Fixed Rate Branch Bond: 4.90% AER
- 1 Year Fixed Rate ISA: 4.90% AER/tax-free
- 2 Year Fixed Rate Online Bond: 4.75% AER
- 2 Year Fixed Rate Branch Bond: 4.75% AER
- 2 Year Fixed Rate ISA: 4.75% AER/tax-free
- 3 Year Fixed Rate Online Bond: 4.60% AER
- 3 Year Fixed Rate Branch Bond: 4.60% AER
- 5 Year Fixed Rate Online Bond: 4.50% AER
- 5 Year Fixed Rate Branch Bond: 4.50% AER
The highest rate available is offered on the one-year bond, paying 4.90%. Yet there are several options if you want an account paying a higher rate of interest.
According to Savings Champion data, the current market leader, Union Bank of India (UK) pays 5.90% AER.
There are also three alternative one-year accounts paying 5.80%, from the likes of Metro Bank, Stream Bank, and Habib Bank.
However, while these accounts pay more interest than the Nationwide bond, they have a larger opening deposit requirement of between £500 and £5,000.
Children’s savings account offers 5%
The building society has also launched an instant access savings account for children, the FlexOne Saver, which pays 5% interest for those aged 11 to 17. But this is a linked product which means these savers need to have a FlexOne current account to get the savings account.
The rate is available on balances up to £5,000, with interest paid annually. It can be held up to the age of 23 before reverting to an easy access account.
Meanwhile, anyone with the off-sale FlexOne Regular Saver account which allows deposits of up to £100 a month will also see their interest rate rise to 5%.
Once again, when it comes to the kids’ savings accounts, there are better options available in terms of the interest paid.
The Children’s Regular Saver from Saffron Building Society, for example, is an easy-access account which pays 5.80% on a maximum monthly deposit of £100.
The Halifax kids’ monthly saver pays 5.50% on up to £100 a month, but withdrawals aren’t allowed in the first year unless the account is closed.
There’s also the Coventry Young Saver, which is an easy access account paying 5.25% on up to £200 a month or a maximum of £5,000.
