Nationwide announces new savings rates

Nationwide Building Society has announced details of its new savings rates, which come into effect on Sunday 1 March 2009.

Following the half point cut in the Bank of England Base Rate on 5 February 2009, Nationwide will be reducing the interest rates on a number of its savings accounts by an average of 0.37%. No savings account rate is being reduced by more than the reduction in the Base Rate and 40% of accounts will see no reduction at all. At the same time, Nationwide will be making a number of changes to try to help savers:

Nationwide is increasing the top rate paid on its Regular Savings account to 3.00% gross p.a./AER and increasing the maximum monthly contribution to £1,000. This will benefit consumers who are looking to regularly save money while at the same time needing flexibility and instant access to their savings.

The maximum balance will increase from £100,000 to £500,000. Additionally, the rate for e-Savings Plus is being reduced by less than the decrease to Base Rate.

Nationwide offers a number of savings accounts with rate guarantees that offer long term value to savers:

e-Savings Plus: AER, for three withdrawals or less, guaranteed to pay at least 0.75% more than the Bank of England Base Rate until 1 January 2010 and at least 0.25% more than the Bank of England Base Rate until 1 January 2011;

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

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

Smart (account for under 18s): 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.

Nationwide also offers savers a range of fixed rate bonds and fixed rate ISA bonds. As announced on 19 February 2009, Nationwide's bond range includes:

Four, three, two and one year Fixed Rate Bonds, paying up to 3.75%, 3.50%, 3.25% and 3.35% gross p.a. / AER respectively;

Six month Fixed Rate Bond paying up to 3.00% gross p.a. / 3.02% AER;

Three, two and one year e-Bond paying up to 3.60%, 3.35% and 3.40% gross p.a. / AER respectively;

Six month e-Bond, paying up to 3.10% gross p.a. / 3.12% AER;

One, two and three year Fixed Rate ISA Bonds paying up to 3.00%, 3.00% and 3.25% gross p.a. / AER respectively.

Andy McQueen, Nationwide's savings and mortgages director, said: "I'm pleased to announce we have increased the top rate paid on the Regular Savings account to reward savers who put aside more money on a monthly basis and increased the monthly amount that can be deposited. Additionally, we have improved our headline e-Savings Plus rate relative to the Base Rate to provide an even more competitive online product. We also continue to provide a range of fixed rate bonds and fixed rate ISA bonds that offer rate guarantees and provide long-term value. With terms from six months to four years, our range of bonds therefore suits a variety of needs.

"Like all providers however, we have had to review our position following the cut in Base Rate and manage our portfolio of accounts in relation to current market conditions. However, no interest rate will fall by more than the reduction in the Base Rate and e-Savings Plus will fall by less."