Nationwide Building Society has increased interest rates up to 0.35 percent.
Customers can now get up to 5.25 percent on certain savings accounts.
As inflation sits above 10 percent, cash in savings accounts will effectively be losing value as the interest is not as high.
However, savers are encouraged to get the highest paying interest on their immediate cash to try and keep up with rising costs.
Since May 1, 2023, the building society has been paying a higher rate of interest on some of their savings accounts such as their Regular Savings range and their Loyalty Savings range.
They also launched new Fixed Rate Online Bonds and Fixed Rate Branch Bonds on Thursday 4 May.
The new rates are:
- One Year Fixed Rate Online Bond – 4.10 percent AER
- One Year Fixed Rate Branch Bond – 4.10 percent AER
The rates are available for balances of £1 or more and savers can open the Online Bonds via the website, Internet Bank and Banking app while Fixed Rate Bonds can be opened in branch.
Previous issues of one-year Fixed Rate Online Bonds and Fixed Rate Branch Bonds and two-year Fixed Rate Online Bond, Fixed Rate Branch Bond and Fixed Rate ISAs were withdrawn at close of business Wednesday May 3.
As the interest rates are predicated to remain high to manage inflation, many banks could continue to increase their interest rates and remain competitive.
Britons are urged to look around and find the best deals for them.
Nationwide’s Start to Save Issue 2 is designed to get people into saving by offering them the chance to win a £250 boost.
It is an instant access, regular savings account paying an interest rate of five percent AER/gross p.a. (variable) for 24 months. It allows people to save up to £50 per month.
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The Society launched Start to Save in a bid to encourage people to put some money away when they can.
In February, more than 900 savers won the £250 in the prize draw.
Around 917 members shared the prize fund of £229,250.
Nationwide’s increased interest rates include:
- Start 2 Save 2 – 5.25 percent
- Help to Buy – 3.25 percent
- Start to Save 3.25 percent
- Flex Regular Saver – 4.25 percent
- Continue to Save – Two percent.
- Child Trust Fund – 3.25 percent
- Junior ISA – 3.25 percent
- Flex Future Saver – 3.25 percent
- Flex One Regular Saver – 3.25 percent
- Smart Limited Access – 2.75 percent
- Future Saver – 2.75 percent
- Smart/Save Two – Two percent.
- Loyalty Saver – 3.2 percent
- Loyalty ISA – 3.2 percent
- Loyalty Single Access ISA – 3.2 percent
- One Year Triple Access Online ISA – 14-15 – 3.2 percent
- One Year Triple Access Online ISA – 13-14 – 3.2 percent.
- Single Access Saver – 2.75 percent
- Single Access ISA 3 – 2.75 percent
- Limited Access Saver – 1.75 percent
- eSavings Plus – 1.75 percent
- Triple Access Saver – 1.75 percent
- Triple Access Saver 2 – 1.75 percent
- Flex Instant Saver 1 – 2.5 percent
- Flex Instant Saver 2 – 2.5 percent
- Flex ISA and Flex Saver – 1.5 – 1.7 percent.
- Instant Access Saver – Issue 10 – 1.55 percent
- Instant access savings accounts (e.g. Instant Access Saver, Instant ISA Saver, Cashbuilder) – 1.25 – 1.5 percent.
Tom Riley, director of Retail Products at Nationwide Building Society, said: “We appreciate it isn’t easy for people to save at the moment with the rising cost of living, but having money set aside that you can use for unexpected expenses can provide real peace of mind.
“As a mutual, we are always keen to support savers and pay the best rates we can sustainably afford, which is why we are increasing rates on all variable rate accounts, including our popular Loyalty and Triple Access accounts.”
For more information, people can visit the Nationwide website.
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