Nationwide slashes savings rate by 25%

Published by Sylvia Morris on 17 February 2015.
Last updated on 17 February 2015

Pound note cut

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It's a hefty 25% cut from the 1.2% (0.96%) on its previous issue, which was withdrawn from sale on Friday.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

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