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Savings rates edge closer to 5% as Nationwide launch new deals

Rising: Savings rates edge closer to 5% as Nationwide rolls out new best buy deals

Savings rates edge closer to 5% as Nationwide Building Society rolls out new fixed-rate offers

  • National launch of three new fixed rate offers paying between 4% and 4.75%
  • Real estate company triple access cash Isa paying 2% is a new best buy
  • The mutual also increased its “easy access” account from 1.75% to 2.1%

The Nationwide Building Society has raised rates on a number of savings accounts, including a new Best Buy fixed-rate deal paying a maximum of 4.75%.

The mutual, which has more than 16 million members, is increasing the rate of its one-year triple access account and its one-year triple access cash Isa contract.

It is also launching three new fixed rate offers. Most notably, its three-year savings deal paying 4.75% is a new best buy, topping the next best offer by 0.14 percentage points.

Rising: Savings rates edge closer to 5% as Nationwide rolls out new best buy deals

Rising: Savings rates edge closer to 5% as Nationwide rolls out new best buy deals

Someone who hides £20,000 in this account for three years can expect to earn £2,987 in interest over the three year period.

The new rate on the current issue of its one-year “easy access” triple access online saver is now a very competitive 2.1% for 12 months.

That puts it among the best easy-to-access paid deals on the open market, surpassed only by Al Rayan Bank’s 2.35% deal and Yorkshire Building Society’s 2.5% deal – although this the latter only deals with balances up to £5,000.

Its one-year Triple Access Cash Isa is even more competitive, paying 2% – it’s currently the best buy in terms of Easy Access Cash Isa deals.

The two triple access agreements concern the same problem. This means that savers who subscribed to the previous rate of 1.75% will also benefit.

As the name suggests, both accounts allow three withdrawals within the 12 month period.

Any subsequent withdrawals will see the interest rate revert to 0.3% for the rest of the period.

Savers should be aware that after 12 months accounts automatically switch to one of Nationwide’s instant access accounts.

Currently, these pay as little as 0.25%, so savers would be advised to reevaluate their options in a year.

For savers willing to give up access to their money for a year or more in exchange for higher returns, Nationwide’s fixed rate deals are also some of the best on offer today.

Its one-year fixed rate pays 4%, its two-year fixed rate pays 4.5%, while its three-year fixed rate pays a market-leading 4.75%.

Savers can start with just £1 and deposit up to a maximum of £5 million. FSCS protection is up to £85,000 per person.

Savers will benefit from a fixed interest rate for the duration, but will not be able to access their money during this period or deposit money into the account on a regular basis.

Someone paying £10,000 on a one year contract paying 4% would earn £400 after one year. Someone depositing the same amount into the 4.5% two-year deal would earn £920 in interest after two years.

How Nationwide compares to the best fixed rate deals
Account type (minimum investment) Assess
ONE YEAR
Melton BS (£10,000+) (8) 4.20
Secure Trust Bank (£1,000) 4.20
Investec (£5,000) 4.15
Atom Bank (£50+) 4.11
At national scale (£1+) 4.00
Shawbrook Bank (£1,000+) 4.00
TWO YEARS
SmartSave Bank (£10,000+) 4.56
Secure Trust (£1,000+) 4.55
Cynergy Bank (£10,000+) 4.50
Nationwide (£1+) 4.50
THREE YEARS
Nationwide (£1) 4.75
SmartSave Bank (£10,000) 4.61
Cynergy Bank (£10,000+) 4.60
(1) Fixed at December 13, 2023

Tom Riley, Director of Banking and Savings at Nationwide, said: “Our savings range continues to evolve to meet the needs of our members, today and tomorrow.

“The increases we are making to the rates for the latest issue of our triple access accounts mean that those who already have these accounts will benefit without doing anything.

“We also understand that many savers are happy to lock in their money for a while, which is why we will be offering very competitive rates on our online fixed rate bonds.”

Earlier this week, it upped its bank account switch offer to market-leading £200.

Save for a good cause

For those who want their savings to be used for a positive cause, a new 21-month fixed savings bond has been launched by the Leeds Building Society in support of the Dementia UK charity.

The fixed-rate bond pays savers a rate of 3.35% and can be opened online, at a branch or by mail.

Leeds Building Society will donate to Dementia UK, based on the total balances invested.

The donation will be equal to 0.1% of the total balances held in the bond on the day after the close of deposits (likely on or around November 30) and an amount equivalent to 0.1% of the total balances held in the bond the day following the closing of the deposits. day after the first anniversary of the closing date will be donated to Dementia UK (charity number 1039404) by the Company.

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