Nationwide Building Society increases interest rates on ‘popular’ accounts

Nationwide Building Society has increased its rates on seven accounts, including its loyalty savers and all instant access accounts.

Interest rates are to go up 0.1 percent on the Loyalty Saver, Loyalty ISA and Loyalty Single Access ISA accounts, increasing to 3.3 percent.

All instant access accounts are to get a boost, including the Instant Access Saver, Instant ISA Saver and Cashbuilder.

Rates on these accounts will go up 0.1 percent, with rates going up to either 1.35 percent or 1.4 percent depending on the amount a person has saved.

Tom Riley, director of Retail Products at Nationwide Building Society, said: “As a mutual, we are always keen to support savers and pay the best rates we can sustainably afford, which is why we are increasing rates on some of our most popular variable rate accounts.

READ MORE: Prices still ‘rapidly rising’ as inflation remains at 8.7% in more bad news for Britons

“At the same time we are also increasing the enduring credit interest rate on FlexDirect, which will benefit those who maintain an in-credit balance.”

Savers with the group will see the boosted rates come into effect in a week and a half’s time, on July 1.

Many banks and building societies have been upping their rates as the Bank of England has consistently increased the base interest rates over the past year and a half.

The base rate is currently 4.5 percent with many analysts expecting it will go up again when the Monetary Policy Committee meets tomorrow.

Below is a full list of the Nationwide accounts that will see their interest rates increase, with the new rates that will come into effect from July 1:

Children’s accounts

• CTF and JISA Maturity – 3.25 percent (up 1.25 percent).

Loyalty accounts

• Loyalty Saver – 3.3 percent (up 0.1 percent)
• Loyalty ISA – 3.3 percent (up 0.1 percent)
• Loyalty Single Access ISA – 3.3 percent (up 0.1 percent).

Limited access accounts

• One Year Triple Access Online Saver – Issues 14-15 – 3.3 percent (up 0.1 percent)
• One Year Triple Access Online Saver – Issues 13-14 – 3.3 percent (up 0.1 percent).

Instant access accounts

• Instant access savings accounts (e.g. Instant Access Saver, Instant ISA Saver, Cashbuilder) – 1.35 percent to 1.5 percent (increase of up to 0.1 percent).

Despite many Britons getting a better return on their savings as interest rates have gone up, inflation continues to outpace many savings offerings, eating into the value of people’s savings and pensions.

The latest inflation figures released today show inflation remained at 8.7 percent for the year to May 2023, the same as it was the previous month.

Food price inflation remains well above this meaning people face soaring costs for their weekly groceries.

Some relief is on the way for household bills, as energy bills are set to go down from the start of July.

Ofgem is decreasing its price cap, meaning average bills for a typical household will drop from £2,500 a year to £2,074 a year.

For the latest personal finance news, follow us on Twitter at @ExpressMoney_.