Savings alert! Nationwide cut savings rates from 1st March!

TheMoneyMan

evenasus wrote: »

First of all, I would not put any money in an 'unstable' institution.

I also prefer to use building societies, rather than banks.

As for Nationwide's E Saver. Norwich & Peterborough BS & Yorkshire BS to name but two, are paying nearly three times Nationwide's rate.

Nationwide 0.95% Yorkshire & Norwich & Peterborough BS 2.75%

Nationwide's E Savings Plus pays a competitive 2.50% as for the other institutions they're obviously desperate for the cash! :rotfl:

evenasus

TheMoneyMan wrote: »

Nationwide's E Savings Plus pays a competitive 2.50% as for the other institutions they're obviously desperate for the cash! :rotfl:

It's not comparable, as make more than 3 withdrawals and you're down to 0.25% interest.

JCB2020

I can get 6% moving my Flexaccount to A&L - to my mind thats better than 0% from NW.

It's Spanish and safe!

NPowerUser

From 1st March 2009 Nationwide are paying just 0.5% interest on its instant cash ISA on balances up to £9,999

With the BOE cutting rates by 0.5% today we could get a savings rate pretty close to zero in the next few weeks. At best perhaps 0.10% - 0.25%? Afterall, they have been pretty swift in cutting savings rates in the past.

How can Nationwide keep a straight face offering a tax free savings account paying less than a quarter of one percent? Watch this space!

Robert_Sterling_3

No doubt they will be cut again by the first of April following today's Bank Rate Cut.
.

Milarky

NPowerUser wrote: »

How can Nationwide keep a straight face offering a tax free savings account paying less than a quarter of one percent? Watch this space!

I think they have compartmentalised brains... a few months ago they rather implied that if the BOE continued to cut rates they wouldn't cut their own tracker mortgages to (eg) less than 3% - invoking the 'collars'. But the gov't - though the FSA - put the kibosh on that saying collars might be 'unenforcible if mortgage holders complained to 'them' (though the FOS) In light of this Nationwide succumbed, I believe, and quietly forgot about protecting its deposit rates and just followed the BOE further down. In effect, with the government directly holding so many of the mortgages in this country through its stakes in NR (includes B&B mortgages), RBS and Lloyds (includes HBOS) no significant player like Nationwide could buck the trend - or at least found they did not have the nerve to.

NPowerUser

I expect many savers are asking the question, is the tiny punitive savings rate being paid to me being used to

Help subsidise those with higher rate fixed bonds?
Help subsidise those with tracker mortgages?
Help pay massive boss and staff bonuses?

If you get that sinking feeling and you can answer "yes" to any of the above, a change of home for your savings might be the answer in your search for a better rate.

RayWolfe

NPowerUser wrote: »

I expect many savers are asking the question, is the tiny punitive savings rate being paid to me being used to

Punitive? To inflict punishment? You sure that's what you mean?

SmileyG_2

A little light relief to help you sleep easier at night.........

http://www.telegraph.co.uk/finance/personalfinance/4938778/New-safe-bed-allows-savers-to-safely-store-their-cash-under-the-mattress.html

SmileyG

TheMoneyMan

neil324 wrote: »

NW are going downhill fast, with their fee free cash withdrawals abroad also coming to an end their going to be losing alot savers.

Customers who just use the Nationwide current account as a 'holiday account' cost the society a lot!

Visa charge Nationwide 1% and in these difficult times, Nationwide are just passing this charge on. Anyway it's still cheaper to use than other bank accounts.