UK-based Nationwide Building Society has announced details of new savings rates for its e-Savings Plus, Regular Savings, One-Year Tracker Bond, Smart and Cash Child Trust Fund accounts.
The society said that e-Savings Plus’s annual equivalent rate (AER) is guaranteed to pay at least 0.75% more than the Bank of England base rate until January 1, 2010 and at least 0.25% more than the Bank of England base rate until January 1, 2011, providing savers make three withdrawals or fewer.
Nationwide added that Regular Savings’s AER is guaranteed to track changes in the Bank of England base rate until January 2010; One-Year Tracker Bond’s AER is guaranteed to pay between 2.05% and 2.30% above the Bank of England base rate; Smart’s (account for under 18s) AER is guaranteed to pay at least 0.25% more than the Bank of England base rate until January 1, 2010; and Cash Child Trust Fund’s AER is guaranteed to pay at least 1.30% more than the Bank of England base rate until January 1, 2010.
Nationwide has also launched a new Two-Year Tracker individual savings account (ISA) paying up to 2.50% gross pa/AER, reportedly offering savers a premium above the Bank of England base rate.
No Nationwide savings account rate is being reduced by more than the reduction in the base rate and almost half of accounts will see no reduction at all, said Nationwide.
Nationwide added that it also offers savers a range of fixed rate bonds and fixed rate ISA bonds which includes five-, three-, two- and one-year fixed rate bond, paying up to 4.15%, 3.50%, 3.25% and 3.35% gross pa/AER respectively; a six-month fixed rate bond paying up to 3% gross pa/3.02% AER; five-, three-, two- and one-year e-Bond paying up to 4.15%, 3.60%, 3.35% and 3.40% gross pa/AER respectively; a six month e-Bond, paying up to 3.10% gross pa/3.12% AER; and one-, two-, three- and four-year fixed rate ISA bonds paying up to 3%, 3%, 3.25% and 2.75% gross pa/AER respectively.
Andy McQueen, Nationwide’s savings and mortgages director, said: 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. We have tried to protect savers wherever possible, no interest rate will fall by more than the change in base rate and the average reduction in rate of 0.25% is significantly lower.
