Nationwide has confirmed that it will increase rates on a range of savings accounts by up to 0.25%, with the changes taking effect from December 1 2026. The move follows the Bank of England’s decision on Thursday to raise interest rates by 0.25% to 4%.
Which accounts are affected
On its limited access range, the 1 Year Triple Access Saver and 1 Year Triple Access ISA will now pay 3.55% for both existing and new customers, an increase of 0.25%. Members saving in Reward Single Access ISA will see rates rise by 0.25% to 3.05%, while Reward Saver and Reward ISA will also increase by 0.25% to 3.00%.
Nationwide is also increasing rates on its children’s accounts by 0.25%. Child Trust Fund, Junior ISA and Future Saver will all now pay 3.05%, while Smart Limited Access will have a rate of 2.75%. Rates on instant access accounts will also rise by up to 0.25%, with Flex Instant Saver rising to 2.50%.
Reaction from advisers
Riz Malik, Independent Financial Adviser at Southend-on-Sea-based R3 Wealth, said: “Factoring in inflation, these returns are better, but nothing to write home about - especially factoring in tax as well. If you have cash over and above your emergency and immediate needs, look at your wider options if you want the chance of real returns.”
Tony Redondo, founder of Newquay-based Cosmos Currency Exchange, said: “The banks are quick to pass on rate rises to borrowers and painfully slow to do the same for savers, so Nationwide’s response to this afternoon’s BoE decision is welcome. Passing the full 0.25% rise across its savings range, children’s accounts and ISAs included, is fair play.”
Pressure on other lenders
Redondo added: “The 1-Year Triple Access Saver moves to 3.55%, though returns stay modest after inflation and tax, and 2.50% on instant access still leaves room for improvement. Other lenders should follow, now. Nationwide’s lead puts pressure on rivals not to shortchange customers. Until they act, savers shouldn’t reward loyalty. Compare rates regularly, shelter excess cash in Cash ISAs, balance instant and fixed accounts, and use boosted children’s rates to build tax-free compound growth early.”
Harvey Dhillon, founder and CEO of Zmartly, added: “These rises are welcome, but savers have to wait for them. The new rates don't start until December 1, and not every account gets the full quarter-point: Flex Instant Saver rises 0.20 percentage points. Other banks should follow and in full. My advice starts with children's accounts. A Junior ISA or Child Trust Fund is tax-free, but an ordinary children's savings account may not be.”
Dhillon also noted that if money a parent gave earns more than £100 of interest in a tax year, all that interest counts as the parent's and is taxed once it takes them over their own savings allowance. At 3.05%, about £3,300 from one parent would pass £100 in a full year, though money from grandparents does not count. For adults, tax on savings interest is already due by law to rise two percentage points in April 2027, and the Budget plans would make it four. He advised using this tax year's ISA allowance before it runs out on April 5.
