The Start to Save 2 account allows deposits of £50 each calendar month over a two-year period. It’s an instant access regular saver currently paying 3.5%.

However, the mutual confirmed that from 1 December 2022, the interest rate will increase to 5% for new and existing members.

It also confirmed a raft of rate hikes across its savings range, including:

• Flexclusive Regular Saver: Rate to increase by 0.5% to 4%
• Help to Buy ISA: Rate to increase by 0.75% to 3% AER
• Loyalty Saver, Loyalty ISA and Loyalty Single Access ISA: Rates to increase 0.5% to 2.5%
• Triple Access Online ISA (11-13) and (12-14): Rates to increase to 2.5%
• Child Trust Fund, Junior ISA and Future Saver: Rates to rise to 3%
• Smart Limited Access: Rate to increase to 2.5%.

Elsewhere, all instant access accounts, including Instant Access Saver, Instant ISA Saver and Cashbuilder will rise by between 0.4% and 0.45% to either 0.75% on balances of up to £9,999.99, 0.8% on balances of £10,000 to £49,999.99 and 0.9% AER on balances of £50,000 plus.

While the changes to products listed in the bullet points above come into effect on 1 December – and just a month after Nationwide last upped rates – it’s on-sale products will see rate changes from today.

These include 2.5% on its 1-Year Triple Access Online Saver and 1-Year Triple Access Online ISA, while the rate on Flex Instant Saver (Issue 2), available to current account members, has increased to 2.25%.

Any Nationwide customer signed up to its Savings Watch will be notified of rate changes.

Nationwide: ‘Encourage people to save’

Tom Riley, director of retail products at Nationwide Building Society, said: “We remain committed to supporting savers, which is why we have increased rates on all our off-sale savings accounts. In recent months, our average deposit rate has been at least 85% higher than the market average, demonstrating our mutual difference.

“Helping people develop a savings habit, particularly at this time, is core to the ethos of a building society. For this reason, one of our biggest increases was made to our regular savings accounts, which we hope will encourage those that can put money away to do so.”

Nationwide results

The rate hikes come as Nationwide posted its half year results today for the period up to 30 September 2022.

It revealed deposit balances grew £3.2bn, compared to £7.1bn in the first half of the 2021/22 tax year. Total deposits stand at £181.2bn which Nationwide said is due to growth in current account credit balances of £1.9bn (H1 2021/22: £2.9 bn) and retail savings balances of £1.3bn (H1 2021/22: £4.2bn).

The mutual said: “Current account balance growth was driven by strong new account openings as a result of switching incentives and increasing the credit interest rate payable on the Flex Direct current account to 5% on balances up to £1,500.

“Operating in a dynamic savings market, balance growth has been supported by competitive fixed rate products and our Triple Access Online Saver. Nationwide’s market share of deposit balances reduced to 9.3% (4 April 2022: 9.4%).”

It reported underlying profit increased from £850m to £980m, while statutory profit rose from £853m to £969m.