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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
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Financial Services

Nationwide offers 8% as savings account battle hots up

NS&I recently issued one-year fixed savings bonds paying 6.2%

Nationwide has joined the increasingly competitive market battle for customers' cash by offering an account paying 8% interest.

The new offer is a regular savings account, available for a year exclusively to its current account customers.

People who switch from another bank, meanwhile, are also being enticed with a £200 payment.

Savers can deposit up to £200 per month, said the building society, and make four withdrawals a year without penalty, after which the rate on the account drops to 2.15%.

Rates on saving accounts have started to rise again after the government-backed NS&I recently issued one-year fixed savings bonds paying 6.2% and forcing its rivals to respond.

Santander initially launched and then pulled an easy access account that paid 5.2% up to £250,000 after being swamped by the demand.

Even NatWest, one of the laggards on the savings front, is now offering a one-year fixed-rate account paying 5.56%, and 5.6% for balances above £100,000 while it now offers a regular savings account that pays 6%.

Rachel Springall, a finance expert at Moneyfacts, told the Guardian: “There has been a positive uplift in savings rates overall, thanks to competition and back-to-back Bank of England base rate rises, but not every consumer may be seeing the benefits. Indeed, less than a third of the savings market pays above base rate.”

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