Nationwide has issued a major warning to its savers, highlighting changes in interest rates on some savings accounts. The building society explained that the variable interest rates on certain savings accounts will be reduced, following a decision by the Bank of England to lower the base rate from 5.25% to 5%. The impact of this change will be seen on four popular savings accounts starting from November 1. However, other accounts will not be subject to any alterations.
For affected accounts, the interest rate adjustment may be based on account balance or the number of withdrawals made. Nationwide confirmed that the interest rate change will be applicable to all accounts of a specific type that customers hold. The affected account types and the corresponding interest rate changes effective from November 1, 2024, are as follows:
– Help to Buy ISA: Current interest rate 3.50% AER/Tax-free (variable) will decrease to 3.35% AER/Tax-free (variable)
– Loyalty ISA: Current interest rate 3.75% AER/Tax-free (variable) will decrease to 3.60% AER/Tax-free (variable)
– Fixed Term Online Bond Maturity (£0.01 – £9,999.99): Current interest rate 2.25% AER/Gross a year (variable) will decrease to 2.05% AER/Gross a year (variable)
– Fixed Term Online Bond Maturity (£10,000 – £49,999.99): Current interest rate 2.30% AER/Gross a year (variable) will decrease to 2.10% AER/Gross a year (variable)
– Fixed Term Online Bond Maturity (£50,000+): Current interest rate 2.35% AER/Gross a year (variable) will decrease to 2.15% AER/Gross a year (variable)
– Continue to Save: Current interest rate 2.50% AER/Gross a year (variable) will decrease to 2.30% AER/Gross a year (variable)
Nationwide has proactively communicated these changes to its customers via email, alerting them to the forthcoming adjustments in interest rates. Customers have been advised to monitor their savings accounts for these rate changes and to review their saving strategies accordingly. For more money-saving tips, customers can sign up for the Money newsletter on the Nationwide website.