Nationwide Slashes Interest Rates on Savings Accounts, Sparking Outrage Among Savers.

Nationwide Building Society has announced reductions in interest rates across several of its savings accounts, effective immediately. The move follows the Bank of England’s recent decision to lower the base rate from 5% to 4.75%. While the lender claims the adjustments keep rates competitive, many savers feel they are once again being short-changed in favor of borrowers.
Key Changes:
- Flexclusive Saver/Flexclusive ISA: Interest rates on balances up to £9,999.99 will drop from 2.1% to 1.85%. For balances between £10,000 and £49,999.99, rates will decrease from 2.15% to 1.9%, while balances of £50,000 or more will see a reduction from 2.2% to 2.05%.
- Instant Access Accounts: Rates on accounts such as Instant Access Saver, Instant ISA Saver, and CashBuilder will also take a hit. Balances up to £9,999.99 will see rates drop from 2.05% to 1.8%, those between £10,000 and £49,999.99 will fall from 2.1% to 1.85%, and those above £50,000 will go from 2.15% to 2%.
- Limited Access Accounts: The 1 Year Triple Access Online Saver will see a rate reduction from 4.1% to 4%, while the Loyalty Saver will drop from 3.6% to 3.5%.
Despite these reductions, Nationwide has opted to maintain rates on a few select accounts, including the Flex Regular Saver 3 (6.5%) and the Start to Save 2 (5.5%), in an attempt to soften the blow for regular savers.
However, critics argue that these adjustments are yet another example of banks prioritizing borrowers over savers. “These banks seem to be determined to return to the days where savers’ interest is stolen and given to borrowers,” said one frustrated customer.
Tom Riley, Nationwide’s Director of Retail Products, defended the cuts, stating: “We have worked hard to limit the impact of the recent rate cut on our savers and have taken the decision to hold rates on some of our most popular accounts.”
Even so, many savers are now looking elsewhere to maximize their returns. Online challenger banks often offer more competitive rates, making them an increasingly attractive alternative for those tired of shrinking returns on their savings.
For those affected, financial experts recommend reviewing their accounts and considering whether switching to a provider with better interest rates would be a smart move.