Nationwide Future Saver - interest rate question

xenial

Hi - I opened last year this account for my child - Nationwide Future Saver 12 months term, and parked most of my child's savings in it, at 3.5% interest rate (if no more than 1 withdrawal is made). If 2+ withdrawals are made, the interest rate becomes 0.50%. The 12 month term ends on 22 Nov 2020. 

However, I received a letter from Nationwide that from 1 May 2020 the interest rate will go down to 1% if no more than 1 withdrawals are made (or if 2+ withdrawals it will be a meagre 0.05%).

My child has another savings account with Halifax (Kids Saver at 1.98% interest rate), which sits almost empty now... so on 1 May I plan to move my child's  savings from the Nationwide Future Saver to this Halifax Kids Saver account. 

Now, we already made 1 withdrawal from Nationwide Future Saver in the current 12 month period. Can anyone confirm what interest rate will be paid up until May 1, if we close the Nationwide Future Saver and move all funds to Halifax, as described above?

Thanks. 

crumpet_man

You would probably best to send Nationwide a secure message.  Closing the account instead of withdrawing funds may also make a difference.
BTW the halifax account is now 1.45% for new customers.  I can't remember if I was notified about a pending rate reduction but I would be surprised if they kept existing accounts at the higher rate.

xenial

Thank you. I managed to speak with Nationwide and I was told that the lower rate doesn't affect my child's Future Saver account if we close the account on 1 May and transfer all funds out (NB. it would affect the rate on the account - for any remaining balance - only if we withdrew some funds and kept the account open with money in it). It does make sense, as the rate will have dropped only after the 2nd withdrawal, but the account will be closed. 

The Halifax Kids Saver rate is showing 1.98% at the moment in the account, and I have not received any notification of any rate change... yet. If it drops, then I guess I will look elsewhere.