Nationwide makes big change to millions of bank accounts from TODAY

NATIONWIDE is making massive changes to millions of accounts today which will leave savers worse off. The nation’s biggest building society is slashing the interest rates on almost 90 savings accounts. The move comes after the Bank of England cut the base rate from 5% to 4.75% in November before holding rates in December. The base rate influences the interest rates banks can offer to customers on financial products such as credit cards, savings and mortgages.

A base rate cut can mean that mortgage rates are lowered, which is a win for homeowners. But savers can be left with the short end of the stick as the interest rate they earn on their savings can also drop. As the base rate falls, some savings providers, including Nationwide, have chosen to lower the interest rates on some savings accounts. Whether you will be affected depends on which savings account you have.

For example, with an easy-access account the rate you earn on your nest egg can change at any time. As such, from today Nationwide is lowering the interest rates on 89 variable-rate easy and instant access savings and cash Isas by between 0.1% and 0.26%. When the rate changes were announced, Tom Riley, Nationwide’s director of retail products, said: “We have worked hard to limit the impact of the recent rate cuts on our savers and have taken the decision to hold rates on some of our most popular accounts, such as our leading Flex Regular Saver.”.

He added that following these changes its savings range “will remain competitive”. He said: “We returned a record £950million in member financial benefit in the first half of this year and we'll continue to give savers every reason to put their money with Nationwide.". Nationwide is cutting the interest rate on 55 non-Isa savings accounts. The majority of the accounts are easy-access, so customers can withdraw their money whenever they want without a penalty.

But some of these accounts temporarily reduce the amount of interest they offer in the months where a withdrawal is made. Many accounts with interest rates of around 2.05% will be slashed to 1.8% from February 1. Several popular accounts such as Branch Easy Access, Cashbuilder Book, Cashbuilder Card, Direct Easy Access and several others fall into this category. Meanwhile, the rate on some accounts will be reduced by a smaller amount.

These include the 1 Year Triple Access Online Saver and various “Smart” accounts, which will have their rates cut by 0.1% and 0.25% respectively. Nationwide is also slashing the interest rate on 34 Isas. Unlike regular savings accounts, Isas offer tax-free savings on up to £20,000 a year. You do not pay tax on any money you save into an Isa, regardless of how much you earn. Most of the Isas are easy-access, which means customers can withdraw their nest egg whenever they choose without paying a penalty.

Nationwide will cut the interest rate on most of its variable cash Isas by 0.25%. This includes:. Some other accounts will also see reductions but these are typically smaller. For example, the rate on the 1 Year Triple Access Online Isa will decrease by 0.1%. The rate on the Branch Reward Isa and Loyalty Isa will also be cut by 0.1%. But some lucky savers will see their rate increase as Nationwide pushes up the rate it offers today.

The Branch Single Access account rate will increase by 0.75% from 2.8% to 3.55%. If you have money squirrelled away in any of these accounts, you may want to consider moving it to a different one with a better interest rate. High street banks often offer worse interest rates compared to newer challenger banks. These online banks often have lower operating costs, which means they can offer more competitive interest rates to lure customers.

Some providers are offering interest rates of up to 5% on their easy-access accounts. THERE are four types of savings accounts fixed, notice, easy access, and regular savers. Separately, there are ISAs or individual savings accounts which allow individuals to save up to £20,000 a year tax-free. But we've rounded up the main types of conventional savings accounts below. FIXED-RATE. A fixed-rate savings account or fixed-rate bond offers some of the highest interest rates but comes at the cost of being unable to withdraw your cash within the agreed term.

This means that your money is locked in, so even if interest rates increase you are unable to move your money and switch to a better account. Some providers give the option to withdraw, but it comes with a hefty fee. NOTICE. Notice accounts offer slightly lower rates in exchange for more flexibility when accessing your cash. These accounts don't lock your cash away for as long as a typical fixed bond account.

You'll need to give advance notice to your bank - up to 180 days in some cases - before you can make a withdrawal or you'll lose the interest. EASY-ACCESS. An easy-access account does what it says on the tin and usually allows unlimited cash withdrawals. These accounts tend to offer lower returns, but they are a good option if you want the freedom to move your money without being charged a penalty fee.