Nationwide Building Society has today announced increases to some of its most popular savings deals – but many customers may feel short changed from tomorrow.
That is because these tiny savings rate increases are totally outstripped by recent mortgage rate hikes, despite both being due to rising Bank of England base rate.
None of the savings rate increases unveiled by Nationwide are more than 0.1 percentage points.
Yet the Bank of England is expected to announce a base rate hike tomorrow from 4.5 per cent to 5 per cent – a move that one expert believes will make Nationwide’s gesture look ‘derisory’.
Derisory? Nationwide is upping the rate on all its instant access accounts by up to 0.1 percentage points.
This also comes at a time when Nationwide has raised mortgage rates three time in less than a month.
Last week, the mutual said it was putting up rates on its range of new fixed-rate homeloan deals by up to 0.7 percentage points.
Three weeks ago the lender raised these rates by up to 0.45 percentage points, which was followed by a rise of up to 0.2 percentage points two weeks ago.
James Blower, founder of savings website, Savings Guru, says: ‘Given that base rate is almost certainly going to be going up to 5 per cent tomorrow, the increases of just 0.1 percentage points on what are some of Nationwide’s most popular products look particularly derisory.
‘I’m sure their mortgage rates will be rising by significantly more than this, and much quicker.’
What is Nationwide changing?
Nationwide is upping the rate on all its instant access savings accounts by up to 0.1 percentage points.
This includes its Instant Access Saver, Instant Isa Saver and Cashbuilder, which will rise on selected tiers up to £49,999 to either 1.35 per cent or 1.4 per cent, depending on the amount saved.
Given that the best instant access deals are all currently paying 4 per cent or higher, savers may want to consider their options.
– Check out the best instant-access savings rates here.
On its limited access range, previous and current issues of Nationwide’s Triple Access Online Isa and Triple Access Online Saver will see increases of 0.1 per cent, with these products now paying 3.3 per cent.
Existing customers saving in the mutual’s Loyalty Saver, Loyalty Isa and Loyalty Single Access Isa accounts will also see rates rise by 0.1 per cent to 3.3 per cent.
Tom Riley, director of retail products at Nationwide Building Society, said: ‘As a mutual, we are always keen to support savers and pay the best rates we can sustainably afford, which is why we are increasing rates on some of our most popular variable rate accounts.’
While it may be hiking mortgage rates by much more than its savings rates, Nationwide is paying out £100 to selected customers through its new Fairer Share scheme, following bumper profits.
That said, many Nationwide customers have been left disappointed, as fewer than a quarter of its 16million members qualify.
But those who do will get £100 between June 13 and 30 – and joint account holders can get £100 each.
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