Nationwide cuts savings account rates

Friday, January 20, 2006

Nationwide building society yesterday introduced reduced interest rates for some of its savings accounts, but declared that it was still ahead of many other financial organisations in its offerings.

The building society says that certain specialised savings accounts will remain unchanged including some for the elderly and children, such as the Monthly Income 65+ and Child Trust Fund.

Nationwide says they are acting in accordance with an underlying trend in the market, which saw interest rates on savings accounts cut by 17 high street savings account providers in 2005.

This trend has crept into the new year, with five of the same providers making further cuts since the start of 2006 and Nationwide says that on average their rates remain 0.4 per cent higher than other high street accounts.

Nationwide says many of its savings accounts have rate guarantees to prevent trends such as this adversely affecting an individual's savings, such as the Members' Reward Bond and the Special Rate Bond.

This week, Nationwide also revealed that they would be increasing the rate of interest on their FlexAccount.

Get some help finding the right savings account here:
http://www.europinions-finance.co.uk/savings/savings/