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Nationwide ups rates across suite of savings accounts

Paloma Kubiak
Written By:
Paloma Kubiak

Nationwide has increased the rates offered on its range of online saver, ISA and fixed rates accounts.

The mutual has increased the rate on its 1 Year Triple Access Online Saver to 2.1% AER/gross (variable) for 12 months.

Meanwhile, the rate on the existing issue of the 1 Year Triple Access Online ISA now stands at 2% gross/tax-free (variable) for the year.

Nationwide confirms the changes are automatic and apply to both new and existing customers.

The accounts allow customers to make three withdrawals within the 12-month period, with any subsequent withdrawals triggering the interest rate to revert to 0.3% for the remainder of the term.

After 12 months, the account switches to one of Nationwide’s instant access accounts.

Online and Fixed Rate bonds

Nationwide has also launched new issues of its Online Bonds and Fixed Rate Bonds. With the Fixed Rate Bonds, customers can also choose monthly interest options. Here are the revised rates:

  • 1 Year Fixed Rate Online Bond – 4% AER/gross (fixed)
  • 2 Year Fixed Rate Online Bond – 4.5% AER/gross (fixed)
  • 3 Year Fixed Rate Online Bond – 4.75% AER/gross (fixed)
  • 1 Year Fixed Rate Bond – 3.25% AER/gross (fixed)
  • 2 Year Fixed Rate Bond – 3.5% AER/gross (fixed).

Elsewhere, the building society has also doubled the interest rate for new and existing customers of the Flex Instant Saver account to 2% AER for 12 months.

This account is available to members who hold any of its current accounts (FlexPlus, FlexDirect, FlexAccount, FlexStudent, FlexOne or FlexBasic).

It comes just days after Nationwide boosted its cash bonus for new and existing current account holders to £200.

Tom Riley, director of banking and savings at Nationwide Building Society, said: “Our savings range continues to evolve to the needs of our members both today and tomorrow. The increases we’re making to the rates on the latest issue of our Triple Access accounts mean those who already have those accounts will benefit without needing to do anything.

“We also understand there are plenty of savers who are happy to lock their money away for a period of time, which is why we will be offering highly competitive rates on our Fixed Rate Online Bonds.”

How good is Nationwide’s offering?

While the rates are competitive, the one-year bond is not market-leading. The top one-year bond offers 4.2% from Secure Trust Bank, according to Savings Champion data.

However, Nationwide leads the best buy tables in the three-year online bond category, with its nearest competitor, Smart Save, paying 4.61%.

On fixed rate cash ISAs, the top one-year deal pays 3.65% from Secure Trust Bank.

Meanwhile savers can get an expected profit rate of 2.35% from Al Rayan Bank on its easy access account.