During 2021, the average interest rate on savings accounts was a mere 0.35 percent according to Swanlow Park. Nationwide’s newest offering of two percent almost quadruples this average but savers have been warned to watch out for the conditions and eligibility criteria for this account.
The Flex Regular Saver account is now offering two percent interest, the highest interest rate currently provided by Nationwide.
However, regular saver accounts generally have a higher interest rate than easy access.
This is due to the fact that they have a few more clauses and restrictions that the instant access accounts.
Nationwide has also reported that this rate is available for a limited time only so savers are urged to act quickly if this is the right account for them.
The Flex Regular Saver requires savers to deposit money into the account every month for 12 months.
This amount cannot exceed £200 and so is not recommended for those that want to put aside a large amount of savings every month.
The account allows savers to make up to three withdrawals during the 12 month account term without affecting this interest rate.
However, making a fourth withdrawal during this time will see the interest rate drop to 0.35 percent for the remainder of the term.
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Savers are also advised that they can only have one Flex Regular Saver account open in their name at any given time.
The account can be opened jointly between two people but one cannot open an account in trust for the benefit of another person.
Savers can open the account on Nationwide’s website, on their internet banking or banking app if they have registered for these services.
The first deposit into the account must be made within 28 days of opening the account or it will automatically close.
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