Nationwide Building Society has announced it will reduce interest rates on more than 60 savings accounts from June 1, affecting millions of savers. The cuts follow the Bank of England's decision to lower the base rate from 4.75% to 4.5% in February, with a further reduction expected tomorrow.
The affected accounts include easy-access savers and Cash ISAs, with rates dropping by up to 0.25 percentage points. For example, the Instant Access Saver Issues 1-9 and 11 will see rates fall from 1.80% to 1.55%. Nationwide's director of retail products, Tom Riley, said the building society had 'worked hard' to limit reductions and that rates would remain competitive.
Savers whose accounts are affected will be notified, typically by email, and can choose to close their account and switch to a better-paying option. However, experts advise looking beyond the headline rate to consider withdrawal penalties, interest payment frequency, and any temporary bonus rates.
Nationwide has not changed rates on its Children's FlexOne Saver or accounts that encourage a savings habit. The building society says its savings range will continue to pay above the market average.
