Interest Rates For Savers

laserbeam

Can anyone explain why when the interest rates keep going up and are expected to go higher the rates on my Nationwide savings account's have not one of them only pays 1% and the highest I have got is 2%.Yet my purchases are costing more I do not want to change banks as have been with Nationwide now almost 20 years.Any advice appreciated.

masonic

If you want competitive rates, then moving your money around is a must, but even if you can't bear to move your money away from Nationwide, there are several options paying more than 1%

https://www.nationwide.co.uk/savings/compare-savings-accounts-and-isas/

jimjames

laserbeam said:

Can anyone explain why when the interest rates keep going up and are expected to go higher the rates on my Nationwide savings account's have not

I do not want to change banks as have been with Nationwide now almost 20 years.

Your 2 statements are linked. If plenty of Nationwide customers like you don't want to move then there is no reason for them to increase rates

AndyTh_2

jimjames said:

laserbeam said:

Can anyone explain why when the interest rates keep going up and are expected to go higher the rates on my Nationwide savings account's have not

I do not want to change banks as have been with Nationwide now almost 20 years.

Your 2 statements are linked. If plenty of Nationwide customers like you don't want to move then there is no reason for them to increase rates

yep. part of the reason I move my money isn't just to chase the rates but to also signal to the companies their no longer competitive.

eskbanker

laserbeam said:

Can anyone explain why when the interest rates keep going up and are expected to go higher the rates on my Nationwide savings account's have not

Because there's no intrinsic link between BoE base rate and interest rates on savings accounts, unless they're (infrequently-found) tracker products.

Some providers choose to bump savings rates up but they're not under any obligation to, so, as above, vote with your feet if you're unhappy....

RG2015

eskbanker said:

laserbeam said:

Can anyone explain why when the interest rates keep going up and are expected to go higher the rates on my Nationwide savings account's have not

Because there's no intrinsic link between BoE base rate and interest rates on savings accounts, unless they're (infrequently-found) tracker products.

Some providers choose to bump savings rates up but they're not under any obligation to, so, as above, vote with your feet if you're unhappy....

This is also my view. (edit, not so much a view more a statement of fact)

However, people talk about banks not passing on rises in base rate to their savers. It implies that banks like Nationwide are getting something from the Bank of England.

I guess if Nationwide increase their mortgage rate on the back of the BoE rate increase that they are "profiteering"

Is this actually true?

It sounds a bit like the energy companies and may explain the suggestion that banks should also be subject to a windfall tax. 

phillw

laserbeam said:

Can anyone explain why when the interest rates keep going up and are expected to go higher the rates on my Nationwide savings account's have not one of them only pays 1% and the highest I have got is 2%.Yet my purchases are costing more I do not want to change banks as have been with Nationwide now almost 20 years.Any advice appreciated.

Bank of England base rate doesn't really affect how much Nationwide can pay you, because they mostly lend deposits & most of their mortgage customers are going to be on fixed rate deals and not trackers.

Bridlington1

You can still keep banking with Nationwide, just don't keep all of your savings there. I have 2 regular savers with them at 3%, currently with £2k between then, the rest is kept elsewhere.

Also Nationwide, like many others, have a habit of bringing out new issues of savings accounts rather than increasing the rates of their existing ones so if you don't move your savings, you end up with pitiful rates. Loyalty doesn't pay when it comes to savings, unless you are keeping £1 in a building society account to become eligible for their loyalty accounts.

wmb194

laserbeam said:

Can anyone explain why when the interest rates keep going up and are expected to go higher the rates on my Nationwide savings account's have not one of them only pays 1% and the highest I have got is 2%.Yet my purchases are costing more I do not want to change banks as have been with Nationwide now almost 20 years.Any advice appreciated.

Because Nationwide doesn't need your money and for years now it's been deliberately keeping its deposit rates down in order to boost its net profits and build its loss absorbing capital.

Albermarle

laserbeam said:

Can anyone explain why when the interest rates keep going up and are expected to go higher the rates on my Nationwide savings account's have not one of them only pays 1% and the highest I have got is 2%.Yet my purchases are costing more I do not want to change banks as have been with Nationwide now almost 20 years.Any advice appreciated.

I had significant savings with Nationwide until about 3 years ago, but the last straw is when they cut rates to the bone, I think during Covid. I still have the current account because the internet banking is fine, and now it is the only 'bank' branch left in the town where I live. I also have a few grand in the easy access account, as it is convenient to easily switch with the current account and the 1.6% is not that bad and for a few grand, the difference is peanuts compared to having to open another easy access account. Otherwise all main savings are now elsewhere.

jimexbox

You have to become a rate jumper, set your trigger point and keep an eye on this forum. An excellent source of information. 

Usually the smaller banks or a new competitor will have the best rates. As long as your cash is fscs protected, you're good.

Leave your DD account with Nationwide and move your savings around.