Nationwide announces it’s upping savings rates

Nationwide Building Society has today announced further increases to some of its most popular savings deals.

It’s the second time in two weeks that Nationwide has announced changes to its savings deals.

On 21 June it unveiled a paltry 0.1 percentage point increase to a number of deals. Since then, the Bank of England has hiked base rate from 4.5 per cent to 5 per cent. 

From 14 July, all its instant access deals will rise by up to 0.8 per cent. This includes its Instant Access Saver, which is rising from between 1.35 per cent and 1.5 per cent to between 2.15 per cent and 2.25 per cent, depending on the amount saved.

Existing customers saving in its Loyalty Saver, Loyalty Isa or Loyalty Single Access Isa account will see rates rise by 0.2 percentage points to 3.5 per cent.

Then, from 1 August, the Society’s Triple Access Online Isa and Triple Access Online Saver will also rise by 0.2 percentage points, with these products paying 3.5 per cent.

These deals allow savers limit savers to three withdrawals a year. Any more than this and the rate plummets to 1.35 per cent. 

As of today, the mutual has also launched a number of fixed-rate savings deals.

This includes a one-year fixed rate bond paying 5.1 per cent and a one-year fixed rate Isa deal – also paying 5.1 per cent.

The accounts can all be opened online or via its banking app with just £1. There is also a branch based version of the deal for those who would prefer to open an account in a Nationwide branch.

How do they compare?

In terms of easy-access savings rates, Nationwide’s Instant deal will fall woefully short of the best rates.

The best easy-access deals on the market are currently offered by The Family Builing Society and pays 4.35 per cent. There are now more than 20 providers paying 4 per cent or more.

Even after the 0.8 percentage point hike, Natiownide’s standard instant access deal will pay roughly half the rate of the best buys.

In fact, its 2.15-2.25 per cent rate is actually worse than the average rate paid across the entire market, which according to Moneyfacts is 2.43 per cent.

Its Loyalty Saver deals and Triple Access accounts look a little more competive at 3.5 per cent.

Someone putting £10,000 in any of these accounts could expect to earn £350 over the course of one year, if rates remain the same.

The Isa versions of these accounts will likely have the biggest draw given that the best buy Isa accounts tend to pay less than the best buy taxable accounts.

The best rate available is currently offered Paragon Bank. Its Triple Access cash Isa deal pays 4.05 per cent.

Someone putting £10,000 with Paragon rather than Nationwide’s Triple Access Isa could expect to earn £55 more interest over the course of one year. 

– Check out the best Isa rates here

At present, its 5.1 per cent one-year fixed rate bond falls short of the market leading rates which pay around the 6 per cent mark.

– Check out the best fixed rate savings deals 

However, its one-year fixed Isa is almost a market leader. It is only beaten by Coventry Building Society paying 5.3 per cent, Zopa Bank paying 5.21 per cent and Charter Savings Bank, which pays 5.2 per cent.