Another savings rate drop - Nationwide Loyalty Saver

paul_metcalf

Dear All, I have just received another letter from one of our beloved financial institutions informing me that my efforts to save are going to be amply rewarded by a rate reduction, this time it's Nationwide. My Loyalty Saver (so named for being a loyal investor for over 15 years) is reducing from 1.70% gross p.a./AER to 1.50% gross p.a./AER. It's a variable rate, so they are allowed to do it, but it demonstrates that Loyalty is a one-way street considering there are no plans for the Bank Of England to change interest rates. Yes...before you all start spouting off about downward pressure and the buy to lend scheme and the effects of other factors, we all know that....it's the principle of a Loyalty Savings account being treated in the same way as any other account. It's meaningless. Furthermore, I am convinced that the main driver towards widespread lowering of interest rates is so that when rates start to rise they will do so from a lower starting point...something many people I talk to seem to be overlooking. These institutions won't be falling over themselves to offer new products at several p.c. points above the base rate...they will come up with some new excuse (which is probably being hatched right now in board rooms all over The City).

All credit to Santander who have kept their rate stable on their current account with interest.


Very disgrunted Nationwide investor

Nicholas-bloody-Parsons

A little disappointing, but NW have kept this rate steady for almost all of 2014 whilst everyone has cut.

You will be hard pressed to beat this rate elsewhere unless you opt for a fixed rate elsewhere, which is what I am considering.

ratechaser

paul_metcalf wrote: »

All credit to Santander who have kept their rate stable on their current account with interest.

I suspect there's little altruism here on Santander's part as it will be costing them a lot of money to maintain. Presumably they have a current account market share % they want to achieve before this gets slashed, although I believe they've already cut the number of 123 accounts you can have to park money in.

I'm just hoping there's no cut before the base rate starts to rise and other savings accounts start to catch up again...

And yes, equally disappointed with Nationwide (25 year member), their regular saver is the only place left to leave a larger amount, and even that's having to be drip fed in...

RC

talexuser

paul_metcalf wrote: »

it's the principle of a Loyalty Savings account being treated in the same way as any other account. It's meaningless.

I think the names of most accounts are meaningless. And since most accounts lower their rates as soon as bonus periods end or new accounts come along and they close to new business anyway, the idea that loyalty gets rewarded nowadays is rather... naïve? But I sympathise with your rant.

ColdIron

Nicholas-bloody-Parsons wrote: »

You will be hard pressed to beat this rate elsewhere unless you opt for a fixed rate elsewhere, which is what I am considering.

I'm no so sure about that, there seems plenty of choice without resorting to fixed rate

http://moneyfacts.co.uk/savings/easy-access-savings-accounts/

http://moneyfacts.co.uk/savings/instant-access-savings-accounts/

eskbanker

ColdIron wrote: »

Nicholas-bloody-Parsons wrote: »

You will be hard pressed to beat this rate elsewhere unless you opt for a fixed rate elsewhere, which is what I am considering.

I'm no so sure about that, there seems plenty of choice without resorting to fixed rate

http://moneyfacts.co.uk/savings/easy-access-savings-accounts/

http://moneyfacts.co.uk/savings/instant-access-savings-accounts/

Not sure if we're definitely looking at the same results but I don't see any accounts in those listings that beat the new 1.5% rate that OP quotes, albeit a couple equal it?

Edit: obviously there are numerous current account alternatives that do have better rates, but not 'traditional' savings accounts....

ColdIron

eskbanker wrote: »

Not sure if we're definitely looking at the same results but I don't see any accounts in those listings that beat the new 1.5% rate that OP quotes, albeit a couple equal it?

You are correct, I was thinking about my own rate which will be 1.2% as I have only been with NW for 3 years, my bad