Nationwide Building Society offers competitive 6.5% interest savings account | Personal Finance | Finance
Nationwide is offering a competitive savings account with a 6.5% interest rate, but you have to bank with the building society to get it. The high street banking giant‘s Flex Regular Saver Issue 7 pays out interest on deposits of £1 and above on the 12-month anniversary of when you opened the account.
While withdrawals are unlimited, you’ll face a lower rate of 1.05% for the rest of the term if you make four or more of them. The topline rate is favourable, but you can only add up to £200 per calendar month (though there are no minimum payments). It’s also worth noting that it’s a variable rate, meaning Nationwide can raise or lower it, something which can happen in response to economic shocks, for example.
After twelve months, Flex Regular Saver Issue 7 reverts to an instant access savings account, generally with a much lower AER. Nationwide will inform you before this happens and let you know the interest rate.
In terms of eligibility criteria, you must:
- have a Nationwide current account
- be 16 or over
- have an email address and mobile number
- be a UK resident
- manage and apply for your account online only, not in person at Nationwide branches
You can open a Flex Regular Saver just for yourself or as a joint account with someone else.
Nationwide is just one of a number of providers currently offering savings accounts with AERs over 6%. Virgin Money’s Regular Saver Exclusive Issue 6 currently offers a fixed rate of 6.5% on deposits of £1 or more, with a maximum monthly deposit of £250 and no monthly minimum.
The term ends on June 30, 2027, when the interest is paid. As with Nationwide’s offering, it’s only open to existing Current Account Customers.
Meanwhile, the building society Hanley Economic 1 Year Branch Smart Saver currently has a variable rate of 6.30%.
The account has a minimum opening amount of £25, after which the variable rate will accrue. A maximum monthly deposit of £300 applies, and a minimum of 10 payments must be made to keep the account active.
Lloyds Bank also has a comparable offering with its Club Lloyds Monthly Saver. The account has a fixed 6.25% AER, with a minimum monthly deposit of £25 and a maximum monthly deposit of £400.
Interest is paid out on the 1-year anniversary of opening the account. It’s open to new and existing Club Lloyds Current Account customers over the age of 18.
