Nationwide has announced it is increasing interest rates on a number of savings accounts and ISAs following the Bank of England's latest base rate decision. The building society confirmed the changes on Thursday, November 5, with some customers set to see their savings rates rise by as much as 0.25 percentage points. The new rates will come into effect from December 1.
Accounts Affected
Among the accounts affected are Nationwide's 1 Year Triple Access Saver and 1 Year Triple Access ISA, which will both increase from 3.3% to 3.55%. The Reward Single Access ISA will rise to 3.05%, while the Reward Saver and Reward ISA will pay 3%.
Customers with a Flex Instant Saver will also see their rate increase from 2.3% to 2.5%. Nationwide is also raising rates on children's savings accounts, including its Junior ISA, Child Trust Fund and Future Saver, which will pay 3.05%.
Other Accounts and New Rates
Other accounts receiving increases include the Help to Buy ISA, Smart Limited Access and several instant access savings products. Some of the new rates from December 1 include:
- 1 Year Triple Access Saver – 3.55%
- 1 Year Triple Access ISA – 3.55%
- Reward Single Access ISA – 3.05%
- Reward Saver – 3%
- Reward ISA – 3%
- Children's Future Saver – 3.05%
- Junior ISA – 3.05%
- Flex Instant Saver – 2.5%
- Help to Buy ISA – 2.5%
Pella Frost, Nationwide's director of everyday banking, said: "Supporting our savers is important to us, which is why we have carefully reviewed our range and are increasing rates on the vast majority of our variable rate savings accounts following the Bank Rate change."
Impact and Mortgage Rates
The announcement follows the Bank of England's decision to increase its base rate by 0.25 percentage points to 4%. Virgin Money will also increase rates across its variable savings accounts by up to 0.25 percentage points from December 1.
However, the changes will not be good news for everyone. Nationwide has confirmed its Standard Mortgage Rate will rise from 6.49% to 6.74% on the same date. Existing customers with tracker mortgages will also see their rates increase in line with the Bank of England's decision.
Nationwide customers signed up to its SavingsWatch service will be notified of relevant savings changes on December 1.
