Nationwide Future Saver (child account) rate drop

crumpet_man

I could not see this mentioned elsewhere, rate reductions due on lots of Nationwide accounts including the Future Saver which was up to 3.5% and from May 1st will be a paltry 1%.  It's odd how a BoE rate reduction of 0.65% causes a 2.5% drop in savings accounts.

https://www.nationwide.co.uk/-/media/MainSite/documents/products/savings/support/SMD008-terms-and-conditions-1-may-2020.pdf

Looks like other Childrens accounts are also reducing rates, Halifax down to 1.5% from 2%, Virgin 1.75% from 2.5%, HSBC 2.5% from 3%.  Some rates effective now and some changing over the next couple of months.

wiseonesomeofthetime

It has been mentioned elsewhere, however, I too could not find it using the basic forum search feature.

I think it may have been within the Regular Savers thread, though unsure.

Clearly "front and centre" now for readers 

Frogletina

I've just had a letter about 3 smart to save accounts which I have got for my grandchildren. Interest rate down from 2% to 0.50%. Not happy about this being a quarter of what it was before. Not sure how easy it will be to close them and re-open new accounts, as I needed a form for each one from their mother to set them up in the first place.

fred246

I have been looking at other childrens accounts. They all require you to go into a branch. Are you supposed to go into branches to open new accounts with the current lockdown? 2 Weeks notice seems a bit unreasonable. 3.5% to 1% drop.

wmb194

fred246 said:

I have been looking at other childrens accounts. They all require you to go into a branch. Are you supposed to go into branches to open new accounts with the current lockdown? 2 Weeks notice seems a bit unreasonable. 3.5% to 1% drop.

You can open Lloyds Banking Group childrens’ instant access accounts online. With Lloyds and BoS the person opening the account needs to be a current account customer whilst this restriction doesn’t appear to apply to Halifax. The rates were recently reduced from 2% to 1.45%, though.

crumpet_man

I doubt you would be able to get an appointment in branch for opening a child's bank account.  I think the Virgin saver can be opened over the phone or by post.  Only 1.75% and no online account management.
https://uk.virginmoney.com/savings/products/virgin_young_saver_issue_7/#how-do-i-open-and-manage-my-account

ratechaser

I'm in the same situation (look at the "Grr, Nationwide" thread) - and best option I can find is this

https://familybuildingsociety.co.uk/Savings/Accounts/Junior-saver.aspx

2.25%, allows postal applications. Not to say that the rate won't reduce of course as it's instant access. Maximum holding of 25k and have to have 3k min to get that rate. 

Agree that anything that can be applied for online is a bit pants right now...

DiggerUK

There is no point in finding better paying accounts to move savings to.
It will be a case of 'one down, all down'..._

kuratowski

DiggerUK said:

There is no point in finding better paying accounts to move savings to.

Think you're on the wrong site, then.

DiggerUK

kuratowski said:

DiggerUK said:

There is no point in finding better paying accounts to move savings to.

Think you're on the wrong site, then.

No, I am on the right site, maybe I'm delivering a message you do not like, but perhaps a message it best not to ignore. 

Holding on to below inflation paying accounts is not saving money. Paying down debts and mortgages would be perhaps a better use of those funds..._ 

fred246

I have a had a word with my daughter. She doesn't have any debts or a mortgage to pay down. I don't think many children do.