And there’s more good news – Nationwide Building Society has launched a new competitive Regular Saver account. This has led to an unrivalled 8% interest rate, fuelling the current crisis for UK savers. This story is only accessible to registered users. It allows customers to deposit up to £200 a month and provides the flexibility of up to three permitted withdrawals per year.
The introduction of the 8% account comes at a time when other financial institutions are enhancing their savings offerings. NatWest recently reported a significant increase in customers opening fixed-rate savings accounts, indicating a growing interest in securing higher returns in the current economic climate.
In most cases, the 8% interest rate applies for only one year. This feature makes it an excellent choice for anyone ready to enhance their savings potential immediately. Customers should be aware that exceeding three withdrawals during the 12-month period will result in the interest rate dropping to 2.15%.
Nationwide has released an innovative, groundbreaking new product. At the same time, National Savings and Investments (NS&I) has jumped into the fray, launching new issues of its one-year fixed-rate guaranteed growth bonds and guaranteed income bonds that pay 6.2%. Both new and current customers are eligible for these rates. They are the biggest returns available since these accounts were introduced in 2008.
Indeed, at time of writing, NS&I accounts dominate the savings best-buy tables for one-year fixed-rate deals. Yet this success is a testament to just how competitive the field is out there. Savings accounts have gotten very appealing too, with many online accounts now offering over 6% interest. It is worth mentioning that less than a third of savings accounts offer interest rates above the Bank of England’s base rate. Many high-yield savings accounts have still gone as low as 1%, highlighting the need for people to have greater access to better options.
Rachel Springall, a finance expert, emphasized the importance of understanding account criteria, stating, “Regular savings accounts work differently to easy access accounts, so it’s important customers read through the account’s criteria to ensure it is right for them.”
She further noted the positive trend in savings rates and how it benefits consumers: “There has been a positive uplift in savings rates overall, thanks to competition and back-to-back Bank of England base rate rises, but not every consumer may be seeing the benefits. Indeed, less than a third of the savings market pays above base rate.”
As an example, Nationwide has decided to double down on its highly-regarded savings account. Simultaneously, it’s attracting new current account customers with a £200 cash offer. The strategy reflects an increasing trend among banks to provide lucrative offers as they compete for customer deposits amid rising interest rates.