Nationwide offers ‘motivating’ 1% interest rate and chance for Britons to win £100

Finance: Expert on impact of inflation on savings accounts

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

Nationwide is one of the most popular building societies in the UK, and it is likely to be particularly familiar to savers across the country. Some will prefer building societies as they are owned by their members, and thus can theoretically offer better interest rates than banking providers. Regardless of the reasons why a person chooses to save with Nationwide, some may be thinking about what the best savings option is for their personal circumstances. The building society is aiming to help those who want to progress on their savings journey through a particular account. This can be done through Nationwide’s Start to Save account, which the building society has said is “designed to get you motivated about saving”. It is likely to be a suitable choice for individuals who wish to save on a regular basis in order to grow their money pot.

With the Start to Save account, individuals will be able to put away between £50 and £100. For this reason, Nationwide states the account will work for those who want to start a savings habit, or alternatively, individuals who are keen to get back into the swing of saving.

But one of the key benefits of this account is is interest rate. The Start to Save account offers a 1.00 percent interest rate AER/gross. This is available for a total period of 24 months. However, the interest rate is variable, so individuals should keep an eye on whether the building society will change it.

The provider states it may not tell individuals if an interest rate is increased, but they will be informed within 30 days. If an interest rate is decreased and a person has £100 or more in their account, they will be informed personally at least 14 days before the rate is reduced. 

With a variable interest rate, Nationwide could change the interest either up or down. This could occur, for example, if there are changes to the Bank of England base rate, or if the provider’s running costs change. 

Nationwide works out a person’s interest on this account daily, and it is then paid into the account yearly, on each anniversary of the account opening with the provider.

Those who choose to close their account will have their interest paid on the day it is closed into another Nationwide current or savings account, or a current account with another UK provider. The building society warns this must be in the person’s name, and able to accept faster payments. 

However, one of the key benefits of saving through the Start to Save account is the prize draw process, which many Britons are likely to be interested in finding out more about. 

To be entered into the prize draw, individuals will need to increase their account balance by at least £50, but by no more than £100, in each of the three calendar months which lead up to the month in which a prize draw takes place.

TSB offers ‘great’ one percent interest rate to savers [INSIGHT]
Self-employed hit back as impact of National Insurance made clear [ANALYSIS]
Warning as pensioner, 86, caught up in £4,000 scam [WARNING]

For example, if a person is wishing to qualify for the prize draw which takes place on January 24, 2022, they will need to increase their total balance by at least £50, but no more than £100, in October, November and December 2021. 

However, Nationwide warns that if a person increases their balance by less than £50, or by more than £100 in one or more of the three calendar months leading up to a prize draw, they will miss out on being entered.

Its website states: “To make sure you never forget to top up your Start to Save account each month, you could set up a standing order from your current account.

“Our Banking app offers tools such as Impulse Saver and Round-ups to help you top up your Start to Save account throughout the month. Just take care that you don’t top it up by more than £100 a month if you’d like to qualify for the prize draws.”

With every account, there are eligibility rules which are worth bearing in mind. Thankfully, Nationwide has laid these out clearly to help people determine whether they can open this kind of account.

Firstly, individuals will need to be 16 or over, and also a resident of England, Scotland or Wales to apply. They must be able to open and manage the account online. Britons are also required to be registered for Nationwide’s Internet Bank, and have a valid email address.

People also need to have another account in their name which will accept faster payments. This is because they need to be able to use it to receive transfers out of the Start to Save account should they be needed.

Britons can only have one Start to Save account in their name at any time. They will not be able to open this account in trust for the benefit of another person.

What is happening where you live? Find out by adding your postcode or visit InYourArea

The account can be opened in one person’s name, or jointly with one other individual. This can be done on Nationwide’s website, or on their Internet Bank or banking app if a person is registered. 

They will need to pay money into their account within 28 days or the account will close. The most individuals will be able to pay in when opening their account is currently set at £100. 

Nationwide explains: “This is an instant access savings account, so you can get access to your money whenever you need it. But if you do withdraw money you may need to repay all or some of it back in during the same calendar month to be eligible for the prize draw.”

At the end of the term, after the 24 month period is over, individuals can expect their money to be moved into an instant access savings account. This will have a lower interest rate, and savers will be contacted by Nationwide to explain their options when this occurs, as well as next steps. 

Source: Read Full Article