The Nationwide Building Society has confirmed a savings rate rise across Fixed Rate and Triple Access products.
The news comes at a time where the Bank of England has raised the nation’s base rate to 2.25 percent to mitigate the impact of inflation on peoples’ income amid the cost of living crisis.
One of the financial institution's to pass on this hike to their customers is Nationwide who are set to raise rates to a “highly competitive” amount.
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Interest rates, according to the Express, have also risen for the latest issue of Nationwide’s One Year Triple Access Online Saver and One Year Triple Access Online ISA. Other changes which are being introduced include the launch of the Fixed Rate Online Bonds which pays rates of up to 4.75 percent.
These recent rate increases will benefit those who are existing customers of Nationwide, as well as those who join the building society.
So what are these rates? Here's what you need to know.
Fixed Rate Online Bonds
As of today (October 5), Nationwide is launching new issues of its Online Bonds onto the markets which will offer “competitive” rates and because of this, certain accounts will pay the following interest rates to the building society’s customers.
This means the following changes:
- One Year Fixed Rate Online Bond – four percent
- Two Year Fixed Rate Online Bond – 4.50 percent
- Three Year Fixed Rate Online Bond – 4.75 percent
Fixed Rate Bonds
Nationwide is also launching new issues with increased rates on its Fixed Rate Bonds. These new rates, which are AER/gross per annum (fixed), will be:
- One Year Fixed Rate Bond – 3.25 percent
- Two Year Fixed Rate Bond – 3.50 percent
Triple Access Accounts
The One Year Triple Access Online Saver’s current issue now pays an interest rate of 2.10 percent AER/gross per annum (variable) for 12 months.
In comparison, the new rate on the existing issue of the 1 Year Triple Access Online ISA is now at two percent gross/tax-free per annum (variable) for 12 months.
Each of these savings accounts allow customers three withdrawals during the 12-month term.
Any further withdrawals will see the interest rate revert to 0.30 percent for the remainder of the period.
Flex Instant Saver
On top of all this, Nationwide is doubling the interest rate of its Flex Instant Saver account for customers.
With this move, the interest rate for new and existing members on this savings account will pay 2.00 percent AER for 12 months.
This savings product is available exclusively to current account members who open or already hold any of the Society’s current accounts.
These include the FlexPlus, FlexDirect, FlexAccount, FlexStudent, FlexOne or FlexBasic accounts.
Tom Riley, the director of Banking and Savings at Nationwide Building Society, outlined why the financial institution is raising rates at this particular time.
Mr Riley explained: “Our savings range continues to evolve to the needs of our members both today and tomorrow.
“The increases we’re making to the rates on the latest issue of our Triple Access accounts mean those who already have those accounts will benefit without needing to do anything.
“We also understand there are plenty of savers who are happy to lock their money away for a period of time, which is why we will be offering highly competitive rates on our Fixed Rate Online Bonds.”
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