Nationwide has withdrawn a number of savings deals from sale and replaced them with new issues offering lower interest rates.
The building society’s range of new product issues includes Fixed Rate Online Bonds, Fixed Rate Branch Bonds and Fixed Rate ISAs.
However, new customers can now only benefit from interest rates of up to 4.25 percent on these accounts instead of 4.5 percent offered before.
As of today, the new interest rates from Nationwide Building Society are:
- One Year Fixed Rate Online Bond – 4.25 percent AER
- One Year Fixed Rate Branch Bond – 4.25 percent AER
- One Year Fixed Rate ISA – 4.25 percent AER/tax-free
- Two Year Fixed Rate Online Bond – four percent AER
- Two Year Fixed Rate Branch Bond – four percent AER
- Two Year Fixed Rate ISA – four percent AER/tax-free.
All previous Fixed Rate Online Bonds, Branch Bonds and ISAs, including the three and five-year products, were withdrawn from sale at the close of business on January 11, 2024.
Lucinda O’Brien, savings expert at Money.co.uk said: “The top interest rates have remained fairly consistent this week, but some rates have dropped on fixed-rate accounts. Interest rates on two-year and three-year fixed rate accounts continue to slide.”
Ms O’Brien added: “With some rates decreasing it might be worth exploring notice savings accounts, as they are offering rates above 5.30 percent.
“For example, The Melton Building Society has a 180-day notice at 5.5 percent and United Trust Bank is offering a 200-day notice account at 5.58 percent. This should encourage savers to explore all of the options available in the market.”
With expectations that the Bank of England’s Base Rate has “already peaked” and cuts are on their way, Alice Haine, personal finance analyst at Bestinvest, said the best deals may have already disappeared.
Ms Haine said: “This is why anyone with money sitting idle in an account with an ultra-low rate should act fast and hunt out the best offer they can find before savings rates dip more dramatically.”
Only yesterday, NS&I joined the vast number of savings providers in rate cuts with a reduction to the prize rate on its popular Premium Bond prize fund.
Myron Jobson, senior personal finance analyst at interactive investor, said: “More broadly, the top savings deals continue to drop like flies, on expectation that interest rates will fall quicker than initial predictions. As such, those who have been waiting to nab a top savings deal might want to get a move on as the very best deals may not be around for much longer.”
He added: “Those who can afford to put money away for at least five years or more should consider investing for the potential of long-term inflation-beating returns that far outstrip savings rates.
“While past performance is not indicative of future results, savers can take courage in the fact that history shows that even a ‘middle of the pack’ fund is likely to outperform returns from cash savings interest over the long term – so, you don’t need to be an expert stock picker to benefit.
“The key is to give your money ample time in the market – at least five years – to smooth out the effects of stock market ups and downs.”
