Nationwide and Barclays launch new savings accounts but are they any good?
Savers now have even more options to choose from with a range of new accounts from Nationwide Building Society and Barclays launched today.
Following successive base rate rises by the Bank of England, providers have been upping the rates they offer and launching new products.
Today Nationwide has launched several new fixed-rate savings accounts and ISAs while Barclays has increased the interest it pays across some of its savings accounts.
While new accounts are always good news for savers, the majority of these accounts are not market leading and higher interest rates are available from other providers. The big providers have also been accused of not passing on rate rises fast enough when the base rate increases, but increasing mortgage rates instead.
The new accounts from Nationwide are:
- 2-year fixed rate bond (online or branch): 5.60%
- 2-year fixed rate ISA: 5.60%
- 3-year fixed rate bond (online or branch): 5.25%
- 5-year fixed rate bond (online or branch): 5.00%
The new rates for Barclays are as follows:
- 1-year savings bond: 5.50%
- 2-year flexible bond: 5.45%
- 1-year flexible cash ISA: 5.50%
- 2-year flexible cash ISA: 5.50%
How do these accounts compare with others on the market?
The Flexible Cash ISA from Barclays does pay a market-leading rate of interest when it’s compared to easy-access cash ISAs but there is a catch. Only three withdrawals are allowed per year and each one can only be up to 10% of the account’s balance.
The market-leading one-year fixed-rate account currently pays out 6.20% from National Savings and Investments (NS&I). The top spot in the two-year fixed-rate tables is the two-year account from Ford Money paying 6.05% and in the three-year charts the best rate is 6%, from Bank of London and The Middle East.
For ISAs, the top one-year account pays 5.85%, although this account from Virgin Money is just for new and existing customers, while in second-place is an account paying 5.83% from Shawbrook bank. Both of these beat Nationwide’s new fixed-rate cash ISA.
You can see all of this week’s best savings accounts and cash ISAs in our roundup.