Nationwide Building Society confirmed it will increase rates on both on and off-sale variable rate savings accounts by up to 0.35%.

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 5%.

However, the mutual confirmed that from 1 May 2023, the interest rate will increase to 5.25% for new and existing members.

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

• Flex Regular Saver: Rate to increase from 4% to 4.25%
• Help to Buy: Rate to increase from 3% to 3.25%
• Start to Save: Rate rise from 3% to 3.25%
• Loyalty Saver, Loyalty ISA and Loyalty Single Access ISA: Rates to increase 0.20% to 3.20%
• Triple Access Online ISA and Triple Access Online Saver: Rates to increase by 0.20% to 3.2%
• Child Trust Fund, Junior ISA and Future Saver: Rates to rise to 3.25%.

Elsewhere, instant access rates will increase by 0.25% to either 1.25% on balances up to £9,999.99, 1.35% on balances of £10,000 to £49,999.99 and 1.5% on balances of £50,000 plus.

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

Tom Riley, director of retail products at Nationwide Building Society, said: “We appreciate it isn’t easy for people to save at the moment with the rising cost of living, but having money set aside that you can use for unexpected expenses can provide real peace of mind.

“As a mutual, we are always keen to support savers and pay the best rates we can sustainably afford, which is why we are increasing rates on all variable rate accounts, including our popular Loyalty and Triple Access accounts.”