Nationwide Building Society is making significant changes to millions of accounts, reducing interest rates on variable-rate easy and instant access savings and cash ISAs by 0.1% to 0.26%. While base rate cuts can benefit mortgage holders, savers may see their earnings decrease. The majority of affected accounts are easy-access, allowing withdrawals without penalty, but some temporarily reduce interest after withdrawals. Savers are advised to consider moving their funds to accounts with better rates offered by online banks.
NATIONWIDE is making massive changes to millions of accounts today which will leave savers worse off.A base rate cut can mean that mortgage rates are lowered, which is a win for homeowners.
But some of these accounts temporarily reduce the amount of interest they offer in the months where a withdrawal is made.Several popular accounts such as Branch Easy Access, Cashbuilder Book, Cashbuilder Card, Direct Easy Access and several others fall into this category.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.
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.These accounts pay some of the best returns as long as you pay in a set amount each month.What are the best savings rates?These accounts typically allow you to make unlimited cash withdrawals.This means that if you were able to save £1,000 into this account, you would have earned £50 in interest after one year.
Fixed-term bonds offer a fixed interest rate for a set period, which gives you a consistent return on your money.Savings rates typically rise and fall in line with the Bank of England’s base rate.interest rate announcement will be on Thursday, February 6.How you can find the best savings rates
Nationwide Savings Rates Interest Rates Easy Access Cash Isas
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