Nationwide Building Society reduces interest rates offered on 10 fixed rate savings accounts

Nationwide Building Society is undergoing a branch rebrand

Nationwide Building Society has withdrawn 10 fixed rate products and replaced them with new Issues

NATIONWIDE BUILDING SOCIETY
Jessica Sheldon

By Jessica Sheldon


Published: 23/11/2023

- 15:20

Updated: 23/11/2023

- 15:21

Nationwide Building Society has withdrawn fixed rate products for the second time in three weeks

Nationwide Building Society has withdrawn 10 fixed rate products from sale and launched new issues with lower interest rates.

The new issues offer an interest rate of up to 4.9 per cent – having previously paid up to 5.2 per cent.


The building society launched new issues of its Fixed Rate Online Bonds, Fixed Rate Branch Bonds and Fixed Rate ISAs yesterday, removing the previous issues from sale at the close of business on November 21.

The rates are available for balances of £1 or more and savers can open Online Bonds via the website, Internet Bank and Banking app.

Nationwide Building Society branch

Nationwide Building Society said the rates are available for balances of £1 or more

NATIONWIDE BUILDING SOCIETY

Fixed Rate Branch Bonds can be opened in branch.

Nationwide’s Fixed Rate ISAs accept transfers in and can be opened via the website, Internet Bank, Banking app or in branch.

The new interest rates are:

  • 1 Year Fixed Rate Online Bond – 4.90 per cent AER
  • 1 Year Fixed Rate Branch Bond – 4.90 per cent AER
  • 1 Year Fixed Rate ISA – 4.90 per cent AER/tax-free
  • 2 Year Fixed Rate Online Bond – 4.75 per cent AER
  • 2 Year Fixed Rate Branch Bond – 4.75 per cent AER
  • 2 Year Fixed Rate ISA – 4.75 per cent AER/tax-free
  • 3 Year Fixed Rate Online Bond – 4.60 per cent AER
  • 3 Year Fixed Rate Branch Bond – 4.60 per cent AER
  • 5 Year Fixed Rate Online Bond – 4.50 per cent AER
  • 5 Year Fixed Rate Branch Bond – 4.50 per cent AER

Nationwide offered an interest rate of 5.20 per cent AER on the aforementioned one-year fixed rate options between November 1 and November 21.

The previous issue, launched on October 17, offered 5.40 per cent AER.

The two year options paid five per cent AER between November 1 and November 21, having previously stood at 5.25 per cent since October 17.

The three-year fixed rate Online Bond and Branch Bond’s previous issue paid 4.80 per cent AER, and prior to that paid five per cent AER.

The five-year fixed rate Online Bond and Branch Bonds, now paying 4.5 per cent AER, formerly paid 4.6 per cent and 4.75 per cent prior to that.

Across the board, fixed rates fell month-on-month for the first time since 2021, with sizeable cuts not seen since 2020, according to the latest Moneyfacts UK Savings Trends Treasury Report.

Rachel Springall, Finance Expert at Moneyfacts, said: “Fixed bonds and ISA rates have fallen across the board, which will be disappointing news to savers.

"There was a clear downward trend in the fixed market as all average fixed rates fell for the first time since March 2021.

"There have been sizeable month-on-month cuts not seen since 2020 and it is the first time that the average one-year fixed bond and ISA rates have fallen in over two years.

"There are expectations for interest rates to drop in the months ahead, so fixed savings rates could fall further before the year is over.

"However, there are still some providers enhancing their fixed rate savings deals, and challenger banks could go against the trend and increase their rates if they need to entice deposits to fund their future lending."

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