New Nationwide deals push savings rates closer to 5%

Nationwide Building Society has increased rates across a number of savings accounts, including a new best buy fixed rate deal paying a top 4.75 per cent.

The mutual, home to more than 16million members, is upping the rate on its one-year triple access account and one year triple access cash Isa deal.

It is also launching three new fixed rate deals. Most notably its three-year savings deal paying 4.75 per cent is a new best buy, leapfrogging the next best deal by 0.14 percentage points.

On the up: Savings rates are closing in on 5% as Nationwide launches new best buy deals

Someone stashing £20,000 in this account for three years could expect to earn £2,987 in interest over the three year period.

The new rate on the current issue of its ‘easy-access’ one-year triple access online saver is now a highly competitive 2.1 per cent for 12 months.

This puts it among the top paying easy-access deals on the open market, bettered only by Al Rayan Bank’s 2.35 per cent deal and Yorkshire Building Society’s 2.5 per cent deal – albeit the latter being only on balances up to £5,000.

Its one-year triple access cash Isa is even more competitive, paying 2 per cent – it is currently a best buy in terms of easy-access cash Isa deals.

Both triple access deals relate to the same issue. This means savers who signed up on the previous rate of 1.75 per cent rate will also benefit.

As the names suggest, both accounts allow three withdrawals during the 12-month term. 

Any subsequent withdrawals will see the interest rate revert to 0.3 per cent for the remainder of the period. 

Savers need to be aware that after 12 months, the accounts automatically switch to one of Nationwide’s instant access accounts.

Currently these pay as low as 0.25 per cent, so savers would be wise to reassess their options in a year’s time.

For savers prepared to surrender access to their cash for a year or more in return for higher returns, Nationwide’s fixed rate deals are also among the best on offer at present.

Its one-year fix pays 4 per cent, its two-year fix pays 4.5 per cent, whilst its three-year fix pays a market leading 4.75 per cent.

Savers can get started with just £1 and deposit up to a maximum of £5million. FSCS protection is up to £85,000 per person.

Savers will benefit from a fixed rate of interest for the full term but won’t be able to access their cash during that time or put money into the account on a regular basis.

Someone paying £10,000 into the one-year deal paying 4 per cent would earn £400 after one year. Someone depositing the same amount into the two year 4.5 per cent deal would earn £920 in interest after two years.

Tom Riley, director of banking and savings at Nationwide, said: ‘Our savings range continues to evolve to the needs of our members both today and tomorrow. 

‘The increases we’re making to the rates on the latest issue of our triple access accounts mean those who already have those accounts will benefit without needing to do anything. 

‘We also understand there are plenty of savers who are happy to lock their money away for a period of time, which is why we will be offering highly competitive rates on our fixed rate online bonds.’

Earlier this week, it upped its bank account switching offer to a market-leading £200.

This post first appeared on Dailymail.co.uk