Nationwide has issued a major warning to its customers who are dedicated savers. In a recent email communication, the building society informed savers that the variable interest rates on certain savings accounts will be decreasing. This decision comes in response to the Bank of England’s reduction of the base rate from 5.25% to 5%. While some savings accounts will be affected from November 1, others will remain unchanged.
It has been specified that the interest rate adjustments will impact four popular savings accounts. For some accounts, the interest rate will be dependent on the account balance or the number of withdrawals made. The changes in interest rates for each affected account type are as follows:
– Help to Buy ISA: Current interest rate 3.50% AER/Tax-free (variable), New interest rate from November 1, 2024 3.35% AER/Tax-free (variable)
– Loyalty ISA: Current interest rate 3.75% AER/Tax-free (variable), New interest rate from November 1, 2024 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), New interest rate from November 1, 2024 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), New interest rate from November 1, 2024 2.10% AER/Gross a year (variable)
– Fixed Term Online Bond Maturity £50,000+: Current interest rate 2.35% AER/Gross a year (variable), New interest rate from November 1, 2024 2.15% AER/Gross a year (variable)
– Continue to Save: Current interest rate 2.50% AER/Gross a year (variable), New interest rate from November 1, 2024 2.30% AER/Gross a year (variable)
Nationwide emphasised that the interest rate changes will apply to all accounts of the respective affected types held by customers. It’s essential for savers to stay informed about these adjustments and consider their saving strategies accordingly.
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