Nationwide changes accounts ‘from next Wednesday’ as some savers miss out | Personal Finance | Finance
Nationwide alterations to numerous savings accounts will take effect on Wednesday, October 1, the building society has announced.
The modifications to savings rates follow the Bank of England’s base rate reduction of 0.25% last month.
From 1 October, rates will be reduced by between 0.20%-0.25% on particular savings products.
The organisation stated: “One of the best ways to kickstart a savings habit is to start young, which is why there are no changes to the rate on FlexOne Saver and FlexOne Regular Saver.
“To encourage current account customers to save regularly, there will also be no changes to the headline rate on Flex Regular Saver, which will remain at 6.50%. Nationwide remains committed to offering a competitive alternative to the high street banks that appeals to all types of savers.”
Tom Riley, Nationwide’s Director of Group Retail Products, commented: “We always work hard to try to limit the impact of any cuts to Bank Rate on our existing savings customers.
“We’ve made a conscious decision to leave the rates unchanged on our FlexOne Saver and Flex Regular Saver accounts, to support regular savers and young people starting their savings journey. Although we’ve made reductions to a number of savings accounts, our range continues to pay more than the market average, giving savers every reason to put their money with Nationwide.”
A Bank of England policymaker has suggested that the UK’s inflation outlook may be at increased risk, warranting a cautious approach to interest rate cuts.
Megan Greene, a member of the Bank’s rate-setting committee, indicated that due to current uncertainties and risks in the economy, it might be more prudent to “skip” rate cuts rather than lower them rapidly.
Speaking at the University of Glasgow’s Adam Smith Business School, Ms Greene predicted that “supply shocks” to the economy are likely to become more frequent.
She highlighted that a “year-long tick up in inflation puts the UK in stark contrast with our developed economy peers”.
Ms Greene also identified climate change and higher tariffs as potential future sources of supply shocks.
However, she noted that global trade tensions have “abated somewhat” due to a “flurry of trade agreements” between the US and other countries, which has helped to reduce uncertainty.
The policymaker emphasised her opposition to “not in favour of policy reversals by central banks”, referring specifically to drastic interest rate cuts, suggesting that “skipping cuts” could be a better strategy.
“Instead, I believe an appropriate response to the uncertainty and risks we are currently facing should involve a cautious approach to rate cuts going forward,” she concluded.
For more information on the Nationwide changes click here.
