Nationwide launches new Regular Savings account

Nationwide Building Society has today announced that it will be launching a new Regular Savings account from 23 January 2007.

Unlike other regular savings accounts, Nationwide’s account does not:

penalise savers for missed payments or withdrawals by closing the account;
limit savers to a single or fixed payment each month;
only last for a short-term;
transfer to a lower paying account at the end of a fixed period;
rely on maintaining a balance in a current account or having monthly salary paid in to a current account.

The Nationwide Regular Savings account has been designed to encourage customers to save regularly and receive a competitive rate of interest. In fact, the more a customer is able to save each month, the more interest they will receive on the whole balance of their account. A card account, it is very flexible, allowing savers access to their funds whenever they need it, without forfeiting the account unlike many of its competitors. There are no penalties for missing a monthly payment as interest will still be paid. The account is not limited to a 12 or 24 month period and customers can take a break from saving whenever they need to. In addition it also carries a guarantee to track changes in the Bank of England Base Rate until 1 January 2010.

If a payment was missed after six months in a Halifax Regular Saver account, for example, it would be closed and interest would be paid at a lower rate on the entire balance, whereas the Nationwide saver could continue to save without penalty and not forfeit their account.

Nationwide’s Regular Savings account provides a better return for savers over time as it does not terminate after a fixed period and sweep funds in to a lower paying account. The table below shows how Nationwide’s Regular Savings account compares against competitors when a monthly sum of £200 is saved.

Stuart Bernau, Nationwide’s executive director, said: “I’m particularly pleased to announce the launch of our new Regular Savings product which, unlike some products from our competitors, isn’t simply a one year wonder. We have listened to the views of our savers and designed an account which meets their needs. We have a reputation for delivering long term good value – where else can you earn 6.25% without smoke and mirrors?

“Unlike many of our competitors, we recognise that it isn’t always easy to save a regular sum each and every month and this new account offers a perfect solution. It is flexible enough to adapt to changes in a saver’s financial circumstances and payments can be missed without forfeiting the account. The interest rate is even guaranteed to track the Bank of England Base Rate until January 2010.

“In offering this Regular Savings account we’re looking to reward people who are genuinely interested in saving, whether it’s a deposit for their first home, to send their children to university or to buy a new car - this account really provides a great rate and true flexibility.”