Nationwide cuts rates on 104 savings accounts
Nationwide Building Society has cut the rate on more than 100 popular savings accounts, including easy-access accounts, Isas and children’s accounts.
The mutual has made 104 cuts, of between 0.15 and 0.25 percentage points, according to Savings Champion, a savings advice service. The reductions took effect on Thursday.
Five of the accounts affected are still open to new customers, while the others hold existing clients’ money. The five accounts still open include Nationwide’s Junior Isa and Smart Account, which is for children. Rates on both were reduced by 0.25 percentage points and the two accounts now pay 3pc and 0.5pc respectively.
The Fixed Term Isa Maturity account had its rate reduced by 0.5 of a point to 0.25pc, while the Fixed Term Bond Maturity account and an online equivalent both suffered reductions of 0.15 percentage points.
Seventy-four of the closed accounts, including Nationwide’s range of easy-access cash Isas, such as previous versions of the Flexclusive Isa, Instant Isa and Online Isa, had their rate cut by 0.25 percentage points. The rest of the closed accounts, including Nationwide’s range of Instant Savers and Easy Access accounts, suffered cuts of 0.15 percentage points.
Lenders are not passing on the full benefit of the Bank Rate cut to their borrowers, research has found.
Comparison service Moneyfacts found that average rates had not fallen by the full 0.25 of a percentage point since August 1 on any type of mortgage. Average standard variable rates dropped by just 0.9 of a point, with just under half of lenders failing to pass the cut on to their customers.
The average lifetime tracker mortgage saw rates fall by almost the full 0.25 of a point, from 2.98pc to 2.74pc, while two-year trackers fell from 2.13pc to 1.94pc. Two-year fixed rates also fell, but by an average of just 0.03 of a point.