Nationwide rockets up the savings best buy tables with a new top ‘easy’-access rate as more big names start to compete for customers
- A new issue of its one-year triple access deal is paying the increased rate
- Only two easy-access deals across the whole of the market currently pay more
- Nationwide is also increasing rates on one and two year fixed rate products
Nationwide Building Society has launched a new issue of its one-year triple access savings account paying a highly competitive 1.4 per cent.
It represents a 0.4 percentage point rise on the previous issue paying 1 per cent and a 0.95 percentage point rise on the 0.45 per cent deal that was available only as far back as February.
It means Britain’s biggest mutual – home to 9.4million members – is now offering an easy-access savings deal that is only beaten by two other providers.
Amongst the best: Nationwide’s new issue of its 1 Year Triple Access Online Saver is paying a highly competitive 1.4%.
Someone stashing £10,000 in the account should secure a return of £140 in interest after one year. Although Nationwide can change the rate at any time.
Tom Riley, director of banking and savings at Nationwide, said: ‘Many savers like to place at least some of their savings in an instant access account to give them piece of mind that they can access the funds should they need to.
‘The new issue of our triple access saver account pays one of the highest rates on the market and will appeal to those looking to save with a brand they know and trust.’
However, the product has three catches that savers need to be aware of before signing up.
First, unlike some easy-access deals, Nationwide’s triple access account only allows for three withdrawals during the 12-month term.
Any subsequent withdrawals will revert the interest rate to just 0.1 per cent for the remainder of the period.
Second, after the initial 12 months, the account automatically switches to one of Nationwide’s instant access accounts meaning the rate will likely plummet.
At present, Nationwide’s instant access saver pays either 0.16 per cent, 0.18 per cent, or 0.2 per cent depending on the amount saved in the account.
Thirdly, any saver who currently has their cash in a previous issue will continue earning their existing rate, rather than being automatically moved on to the new and improved rate.
Therefore, those savers will need to withdraw their funds from the old issue and open the new issue in order to benefit.
How does Nationwide compare?
Compared to the big banks, Nationwide is way ahead when it comes to offering easy-access.
Santander’s has the highest paying easy-access deal of the high street banks, paying 0.75 per cent after it hiked rates this week. Most of the big names pay much less.
Nationwide has also put itself ahead of most of the other major building societies, although Principality Building Society also pays 1.4 per cent on its double access deal – albeit limiting savers to just two withdrawals each year.
As for the rest of the market, the Nationwide deal is extremely competitive. Only Cynergy Bank’s 1.46 per cent deal and Al Rayan Bank’s 1.45 per cent deal pay more.
On top of its triple access account, Nationwide is also increasing rates on its one and two-year fixed rate products.
However, with the one-year deal now paying 1.4 per cent and its two-year deal paying 1.7 per cent, savers would be wise to consider the rest of the market as it is possible to almost double your rate by going elsewhere.
The best one-year and two-year fixed rate deal is currently offered by Cynergy Bank paying 2.72 per cent and 3.08 per cent.
It comes hot on the heels of TSB boosting its fixed-rates this week.
Cynergy Bank is a member of the Financial Services Compensation Scheme and therefore any deposits with the bank are protected up to a total of £85,000 by the UK’s deposit guarantee scheme.
You can find out more about the best fixed rates on the market by visiting This is Money’s independent best buy league table.
THIS IS MONEY’S FIVE OF THE BEST CURRENT ACCOUNTS
Chase Bank’s will pay £1% cashback on spending for the first 12 months. Customers also get access to an easy-access linked savings account paying 1.5% on balances up to £250,000. The account is completely free to set up and is entirely app based.
Virgin Money’s M Plus Account offers £20,000 Virgin Points to spend via Virgin Red when you switch and pays 2.02 per cent monthly interest on up to £1,000. To get the bonus, £1,000 must be paid into a linked easy-access account paying 1% interest and 2 direct debits transferred over.
HSBC’s Advance Account pays £170 when you switch to the account. You need to set up two direct debits or standing orders and pay in at least £1,500 into the account within the first 60 days.
First Direct will give newcomers £150 when they switch their account. It also offers a £250 interest-free overdraft. Customers must pay in at least £1,000 within three months of opening the account.
Nationwide’s FlexDirect account comes with up to £125 cash incentive for new and existing customers. Plus 5% interest on up to £1,500 – the highest interest rate on any current account – if you pay in at least £1,000 each month, plus a fee-free overdraft. Both the latter perks last for a year.
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