Na­tion­wide cuts rates on 104 sav­ings ac­counts

The Daily Telegraph - Your Money - - YOUR MONEY - Amelia Mur­ray and Olivia Rudgard

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.

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