Nationwide cuts interest rates on savings and banking accounts

Nationwide Building Society has announced details of its new savings and banking rates which come into effect on Thursday 1 January 2009.

Following the one percent cut in the Bank of England Base Rate on 4 December 2008, Nationwide will be reducing the interest rates across its savings and banking accounts by an average of 0.87 percent.

Nationwide is committed to providing accounts which are simple, straightforward and easy to understand. A number of the Society's savings accounts also have rate guarantees to reassure savers:

Monthly Income 60+: AER guaranteed to match the Bank of England Base Rate until 31 January 2011;

Smart: AER guaranteed to pay at least 0.25% more than the Bank of England Base Rate until 1 January 2010;

Cash Child Trust Fund: AER (including additional bonus) guaranteed to pay at least 1.30% more than the Bank of England Base Rate until 1 January 2010;

Regular Savings: AER guaranteed to track changes in the Bank of England Base Rate until 1 January 2010.

Matthew Carter, Nationwide's divisional director of savings, said: "Nationwide is committed to providing accounts which meet the needs of savers. However, like all providers, we have to manage our portfolio of accounts in relation to current market conditions and when base rates fall, savings rates have to follow. Despite these cuts we continue to offer good value to savers including a range of accounts with interest rate guarantees."