Nationwide Building Society increases savings interest rates

Martin Lewis advises on savings accounts and premium bonds

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The building society today announced further rate increases on all of its off-sale variable rate savings accounts. This interest rate increase will be effective across Nationwide’s savings products from November 1, 2022. With this change, rates for variable savings accounts will increase by up to 1.20 percent which will boost returns for savers.

This announcement by Nationwide comes shortly after the confirmation that Consumer Price Index (CPI) rate of inflation has returned to a 40-year high of 10.1 percent.

As the cost of living crisis continues, inflation has been one of the many factors which have diminished returns for savers.

To mitigate this issue, the Bank of England has raised the nation’s base rate continuously over the last couple of months and has now reached 2.25 percent.

High street banks and building societies, including Nationwide, have passed on the interest rate hike to their customers.

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Here is a full list of the savings accounts from Nationwide which are to experience interest rate increases, from November 1, 2022:

  • Rates on the Nationwide children’s accounts will rise by up to 0.50 percent to 2.50 percent
  • Start to Save accounts are being increased by 0.50 percent to 3.50 percent
  • Nationwide’s Help to Buy ISA will rise by 0.50 percent and pay 2.25 percent AER
  • Loyalty Saver, Loyalty ISA and Loyalty Single Access ISA accounts will see rates rise by 0.40 percent to two percent gross/AER.
  • Previous issues of the building society’s Triple Access Online ISA (11-13) and Triple Access Online Saver (12-14) will see rate increases of between 0.60 percent and 1.20 percent, to pay two percent (ISA) and 2.10 percent (Saver)
  • Instant Access Saver, Instant ISA Saver and Cashbuilder will rise by between 0.05 percent and 0.15 percent to either 0.30 percent, 0.40 percent or 0.50 percent AER.

In the last couple of months, Nationwide’s average deposit rate has been at around 70 percent higher than the market average.

According to the building society, these latest rate increases are part of its “commitment” to supporting its members.

All existing Nationwide customers can keep up to date with any interest changes by signing up to the building society’s SavingsWatch.

Tom Riley, the director of Retail Products at Nationwide, shared why the building society is helping its existing customers in this way.

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Mr Riley explained: “We continue to keep our savings rates under regular review in this fast-changing market.

“We remain committed to supporting savers with the best rates we can sustainably afford.

“As a result, we’ve made a number of rate increases this year to both our off-sale and on-sale savings ranges.

“In fact, in recent months, our average deposit rate has been at least 70 percent higher than the market average.”

Nationwide’s director noted that different types of savers are set to “benefit” from the building society’s latest actions.

He added: “These latest changes will benefit all different types of savers.

“As a building society, it’s important to us that we encourage children to start saving, helping people develop a savings habit and rewarding our existing members.

“We’ve also increased the rates on previous issues of our Triple Access Online products so members who already have one of the accounts will have their rate automatically increased to the new improved rate.”

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