Nationwide new rates (w.e.f 01.01.09)

Milarky

PDF sheet

Notice

NATIONWIDE ANNOUNCES NEW SAVINGS AND BANKING RATES
Nationwide Building Society has today announced details of its new savings and banking rates which come into effect on Thursday 1 January 2009. Following the one percent cut in the Bank of England Base Rate on 4 December 2008, Nationwide will be reducing the interest rates across its savings and banking accounts by an average of 0.87 percent.

Popular accounts

e savings (all balances) 1.95% (-1.10%)
e savings plus 2.75% (-1.00%) 0.5% (-1.00%) for 3+ withdrawals
[some confusion about the 'net' rate being '0.20' when it ought to be '0.4%']
Instant access ISA (£1-£9999) 1.50% (-1.10%)
Members ISA bond (£1-£9999) 1.75% (-1.10%)

Interesting to see how Nationwide reckons they've only cut rates by '0.87%' on average. I suspect it has something to do with so many accounts already paying less than 1pc pa - and therefore by not cutting these it somehow flatters the actual cuts made.

[Duplicitous...]

apt

That really is a collection of dross from Nationwide. There's no point in having money in any of their variable accounts. People should just use the Flexaccount for foreign spending and save their money elsewhere. The difference between YBS that has cut its most popular accounts by less than the base rate falls and Nationwide that's cut its accounts by more is striking.

John_0771

Good thing I've moved all my savings to A+L

fullstop

Have some money in The Cheshire BS as well, so expecting Nationwide to slash the rates there soon as well.

Nationwide proud to be different :rotfl:

amcluesent

Glad a setup that 5% Web Saver with Halifax! That'll do me until the IMF has to rescue Britain and demand rates are put up again to restore sound money.

cottager

That's horrendous for the eSavings... even worse than Abbey or Halifax, and I thought they were bad enough.

As a matter of interest (because I don't understand these things), while accepting that sooner or later their rates could fall too, why or how is it that some institutions like YBS can keep up better rates when others just compare so poorly? Is it because they're smaller?

I have money in an NBS eSaver to service 12 x SO/regular payments recently set up out of the Flex (to pay into a regular savings account opened elsewhere). Having now set up the 12 payments, does anyone know if I can cancel the SO arrangement?

I'd rather move the funds to a new NatWest eSavings just opened with a bonus, and pay it from there instead -- it would be easier anyway, as I'm pretty sure payments can go directly out of NatWest eSavings instead of (at Nationwide) having to TF funds into the Flex first.

Milarky

cottager wrote: »

I have money in an NBS eSaver to service 12 x SO/regular payments recently set up out of the Flex (to pay into a regular savings account opened elsewhere). Having now set up the 12 payments, does anyone know if I can cancel the SO arrangement?

Yes. It's very simple to cancel/amend payments with Nationwide.

I'd rather move the funds to a new NatWest eSavings just opened with a bonus, and pay it from there instead -- it would be easier anyway, as I'm pretty sure payments can go directly out of NatWest eSavings instead of (at Nationwide) having to TF funds into the Flex first.

Yes, it will work from NawtWest account to all your regular savers (many will now accept 'faster payments') - albeit you have to make all the payments yourself once each month as there are no standing orders AFAIAA. Finally 12 regular savers? That's a lot of such accounts. Are you monitoring that rates are still competitive - that the regular saver remains the 'best' account in the circumstances, and checking the regular saver terms and conditions closely to be able to amend the size of payments where they are not?

cottager

Milarky wrote: »

Yes. It's very simple to cancel/amend payments with Nationwide. ... Finally 12 regular savers? That's a lot of such accounts.

Oh no no, don't worry! Sorry if it was confusing. I meant 12 regular monthly payments (i.e. for the next year) into one saver, not 12 different regular saver accounts
But thanks for your concern. (Wish I had enough money to fund 12!)

I asked about cancelling the SO from NBS Flex as I've never set up an arrangement there before, only from a NatWest current a/c, so I wasn't sure with them being a B/S if it was as simple to manipulate. And I don't think I've ever had an SO arrangement anywhere with a set number of payments and then it stops, only an open-ended one till cancelled. So it's a bit 'different' from what I've done before.

Milarky wrote: »

it will work from NawtWest account to all your regular savers (many will now accept 'faster payments') - albeit you have to make all the payments yourself once each month as there are no standing orders AFAIAA

Ah... so I will still have to remember every month! I was hoping to set up a standing order straight from it, but not to worry -- I was going to have to remember to transfer from the NBS eSavings to Flex anyway.

Appreciate the help.

OfficeSpace

cottager wrote: »

As a matter of interest (because I don't understand these things), while accepting that sooner or later their rates could fall too, why or how is it that some institutions like YBS can keep up better rates when others just compare so poorly? Is it because they're smaller?

They would most likely be losing money on the product, so it will either be a case of losing money on the whole savings book or robbing another group of savers to pay for it. The common trick of course it to launch issue 2 (and so on) of an account and run the back book rate down. You rely on customers not bothering to move their funds, but you don't damage your marketable rate at the same time. Something Nationwide at least don't do (yet!). That's why it's best to keep your savings on the move if you want to make the absolute maximum on your instant access money.

It may also be a case that this is the only way they can generate sufficient net receipts in order to lend anything, where a bigger player like Nationwide finds it easier. In that way it potentially works out as a more profitable scenario for them.

lilac_lady

I've moved money from my N/Wide E/Savings account to National Savings Bonds. Who knows what's the best savings deals now? It's like musical chairs.

easteregg_2

For a company that is supposed to be run for the benefit of its members - this is a joke. I can earn more money with my savings in the local bank. Perhaps it can now stop its high profile advertising and start using its (our) money more wisely ?