Nationwide pays savers 6.25%

By SASCHA HUTCHINSON
Updated:

 

Nationwide is launching a regular savings account in which customers who deposit the maximum allowance of £250 a month can earn 6.25%.

nationwide

The new savings account, which is open to all savers – not just those with a Nationwide current account – seems to be free of many of the conditions that plague other regular savings accounts. But it does impose a maximum monthly limit of £250.

The Nationwide regular savings account staggers its savings rates so that customers who deposit more money earn more interest.

Those depositing less than £100 a month will earn 4.25%, those who deposit between £100 and £200 earn 5.75% and those who deposit from £200 to the maximum £250 earn 6.25%.

Unlike other regular savings accounts there are no penalties for withdrawing money or missing a monthly payment. And customers do not have to commit to regular deposits for any set period of time. In essence, this account resembles other instant access accounts, except that you may only deposit a maximum of £250 a month.

Customers will also be issued with a cash card meaning they can access their money through ATMs.

Last week This is Money reported that the first fixed rate account paying more than 6% had been launched by Birmingham Midshires. The account, which can be opened with as little as £1, pays 6.05% to savers who are prepared to lock away their money for one year.

This is Money says: This will be a useful account for savers who might have a regular amount of £200-£250 to put aside each month and want to earn 6.25%. It's refreshing to hear that savers will not be punished for needing some flexbility in their monthly savings habit.

But it's disappointing that Nationwide have chosen to limit the maximum monthly deposit. Savers who have larger amounts than this to save each month should firstly ensure that they have used up their maximum cash mini Isa limit of £3,000 a year.

For savers who want more flexibility can still earn reasonable rates on internet savings accounts. The best on the market at the moment is Icesave, paying 5.7%. Nationwide will pay 5.75% to savers paying in £100-£200 a month.

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