Nationwide makes massive change to bank account affecting millions | Personal Finance | Finance

Nationwide will lower rates by between 0.10% to 0.25% following the Bank of England’s decision to cut interest rates in November.

Most of the changes apply to accounts with a variable rate of interest. If you have an account where the rate is fixed, the interest should stay the same.

The base rate, which determines savings rates as well as borrowing costs including mortgages, was reduced from 5% to 4.75% in November.

Nationwide said the changes, which apply to savings from February 1, still meant most accounts would receive a smaller rate reduction than the 0.25% movement in Base Rate.

The accounts where interest rates are reduced include the 1 Year Triple Access Online Saver, which will fall by 0.10% to 4.00%

Savers with a Nationwide Loyalty Saver account will receive a reduction of 0.10%, with a new rate of 3.50%, while Flex Instant Saver account holders will see a reduction of 0.25%, with a new rate of 3.00%.

Nationwide said it would not slash rates on regular savings accounts as it wanted to encourage customers who put a small amount of money aside each month.

It said the Flex Regular Saver 3 rate was unchanged at 6.50% with Start to Save staying at 5.50% and FlexOne Saver remaining at 5.00%.

Tom Riley, director of retail products at Nationwide, said: “We have worked hard to limit the impact of the recent rate cut on our savers and have taken the decision to hold rates on some of our most popular accounts, such as our leading Flex Regular Saver. Following these changes, our savings range will remain competitive.

“We returned a record £950 million in member financial benefit in the first half of this year and we’ll continue to give savers every reason to put their money with Nationwide.”