Nationwide cuts savings rates
Customers with Nationwide Building Society will experience new savings and banking rates from the beginning of next month.
Nationwide took the step following the Bank of England's decision to cut the base rate by half a per cent earlier this month.
Matthew Carter, divisional director of savings at Nationwide, said: "Nationwide is committed to providing a range of accounts that meet the needs of savers."
Savings account rates are being reduced by an average of 0.41 per cent across a number of products, although no rate is being reduced by more than the base rate.
Nationwide's new online savings account, e-Savings Plus, will not have a reduced interest rate, but AER for three withdrawals or less will now be guaranteed to pay at least 0.75 per cent above base rate until next January.
Mr Carter continued: "Following the cut in the base rate, we, like all providers, have had to review our position and manage our portfolio of accounts in relation to current market conditions."
New rate guarantees are also being launched on various accounts, including the smart account and cash child trust fund, guaranteed to pay at least 0.25 per cent and 1.30 per cent above base rate until January 2010.
From next month, 17.9 per cent AER will be the overdraft rate for all FlexAccounts - described by a spokesperson as "exceptional value and one of the lowest in the industry".
Also new is a one year tracker bond which, depending on the account balance, will pay between 2.05 per cent and 2.30 percent above base rate.
All offers and changes will take effect from February 2nd 2009.
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