The building society recently launched a new range of fixed bond savings products for new and existing customers. As part of Nationwide’s latest offering, savers can benefit from interest rates as high as four percent.
As of January 31, the following savings products from the building society have been available on the market:
- One-Year Fixed Rate Online Bond – pays interest rate of 3.75 percent AER
- Two-Year Fixed Rate Online Bond – pays interest rate of four percent AER
- One-Year Fixed Rate Branch Bond – pays interest rate of 3.75 percent AER
- Two-Year Fixed Rate Branch Bond – pays interest rate of four percent AER.
All of these savings interest rates are open to customers who take out an account for balances of £1 or more.
Customers can choose to open one of the online bond products through a variety of means, including Nationwide’s website, Internet Bank and Banking app.
Anyone who wants to open one of the building society’s branch bond products can visit one of Nationwide’s sites in person.
It should be noted that previous one, two and three-year Fixed Rate Online Bonds, one and two-year Fixed Rate Bonds and the Inheritance ISA product were withdrawn by the building society on January 31.
Last month’s product launch by Nationwide comes amid a slew of interest rate hikes by high street banks and building societies.
Financial institutions are reacting to the Bank of England’s decision to raise the base rate and are partially passing on this increase to their own savings accounts.
As it stands, the base rate is sitting at four percent and has been raised 10 consecutive times within the last year to rein in inflation.
The Consumer Price Index (CPI) rate of inflation for January 2023 came to 10.1 percent, which represents the third month in a row it has dropped.
Despite this fall, the current inflation rate remains extremely high and continues to be a strain on the majority of Britons.
Even with this concern, analysts are reminding the public that inflation is “predicted” to continue to go down in the coming months.
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Rachel Springall, a finance expert at Moneyfacts.co.uk, broke down the current state of the savings market.
She explained: “Inflation is predicted to come down to around three percent in 2024, and based on today’s top rates, savers would be able to make a return on their cash.
“However, as it stands there is not one single standard savings account that can outpace the current rate of the CPI.
“It is expected that variable interest rates will continue to improve due to competition and the consecutive base rate rises fuelling the market.”
The savings expert also urged bank and building societies customers to check how much they are currently getting in returns and explore other deals on the market.
Ms Springall added: “Savers who have not checked their existing rate would be wise to do, as not every provider has passed on each single base rate rise.
“As the Bank of England base rate stands at four percent it is vital consumers take time to compare the latest deals on the market and sign up to rate alerts for any table-topping rates.”
The Bank of England is next set to announce changes to interest rates on Thursday, March 23, 2023.
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