Nationwide slashes savings rate by 25%

17 February 2015

Nationwide Building Society is the latest big provider to cut rates for new savers. Its Limited Access Saver Issue 3 pays just 0.9% before tax (0.72% after) and restricts you to five withdrawals a year.

It's a hefty 25% cut from the 1.2% (0.96%) on its previous issue, which was withdrawn from sale on Friday.

Top rates on easy-access accounts are on offer from Post Office Online Saver at 1.4% (1.12%), including a bonus for the first year. Coventry BS pays the same on its PostSaver but limits you to 12 withdrawals a year.

The top deal with no bonus and no withdrawal restrictions comes from Skipton Building Society's Limited Edition E-Saver at 1.25% (1%). But as its name implies, it is unlikely to be around for long.

Find the best cash Isa or savings account for you

Fixed-rate deals

On fixed-rate bonds, best deals include 1.76% (1.41%) with the tiny National Counties Building Society for one year, 2.25% (1.8%) for two years from Harrods Bank, and 2.4% (1.92%) for three years from Close Brothers.

On easy-access tax-free cash Isas you can earn 1.5% including a bonus for the first 18 months with Post Office Premier Isa.

National Savings & Investments also pays 1.5% - with no bonus - but you can't transfer your existing cash Isas into this account. For transfers, Barclays pays 1.49% on a minimum £30,000 with no bonus.

The top fixed-rate deal on cash Isas for one year comes from Virgin Money at 1.7%, while Post Office pays 1.95% for two years.

This article was written for our sister website Money Observer

Add new comment