Nationwide cuts rates for loyal savers

FAITHFUL customers of Nationwide BS will be asking themselves what price loyalty after a series of rate cuts from the start of this month.

The interest paid to savers who’ve been with the society for 15 years on the closed easy-access Loyalty Saver account is now 0.96 pc after tax (1.2 pc before tax), down from 1.2 pc (1.5 pc).

The account pays different rates depending on how long you have been a member. Those who have been members for five years will see their rate fall to just 0.8 pc (1 pc).

The falls are part of wider cuts to nearly 30 accounts closed to new savers brought in by the building society this week.

The rate on its Easy Access 3 has halved to 0.4 pc (0.5 pc), down from 0.8 pc (1 pc), as has Instant Saver 1.

A number of its cash Isa rates have also been cut by as much as 0.5 pc. Its E-Isa dropped to just 0.75 pc, down from 1.25 pc.

Loyal savers earn less than what’s available in similar accounts from rivals. Top easy-access accounts from other providers available online and in the High Street pay 1 pc (1.25 pc).

But Nationwide is not the only one to chop rates. Co-op Bank also cut Isa rates on its closed accounts from its old Britannia range. The rate on its Select Isa 3 on sale a year ago has been cut from 1.5 pc to just 1.1 pc.

Not every rate move is downwards. The new Charter Savings Bank has raised the return on its fixed-rate bonds for those taking out an account now. It pays a top 1.6 pc (2 pc) for one year or 1.76 pc (2.2 pc) for two years. They are available online.