Nationwide Building Society has quietly cut interest rates on a range of savings accounts, leaving many customers with reduced returns on their deposits. The move comes amid fluctuating market conditions and shifting monetary policies.
Which Accounts Are Affected?
The changes impact several popular savings products, including:
- Instant Access Saver
- Limited Access Saver
- Regular Saver accounts
Rates have been reduced by up to 0.5 percentage points, significantly lowering potential earnings for savers.
Why Are Rates Being Cut?
Andrew Hagger, a personal finance expert, explains: "This is part of a broader trend in the banking sector. With the Bank of England holding base rates steady, many providers are adjusting their offerings to maintain profitability."
Other major banks, including HSBC, Lloyds, and digital challengers like Monzo, have also made similar adjustments in recent months.
What Can Savers Do?
Financial advisors suggest several options for those affected:
- Shop around: Compare rates across different providers
- Consider fixed-term accounts: These often offer higher returns
- Explore cash ISAs: Tax-efficient savings options
- Review regularly: Stay informed about rate changes
With savings rates in flux, experts recommend reviewing your financial strategy at least quarterly to maximise returns.
