In 2021, the average interest rate on savings accounts was only 0.35% according to Swanlow Park. Nationwide’s latest bid by two percent nearly quadruples that average, but savers have been cautioned to be careful with the terms and eligibility criteria of that account.
The Flex Regular Saver account now offers 2% interest, the highest interest rate currently provided by Nationwide.
However, regular savings accounts generally have a higher interest rate than Easy Access.
This is because they have a few more clauses and restrictions than instant access accounts.
Nationwide also reported that this rate is only available for a limited time, so savers are urged to act quickly if this is the right account for them.
The Flex Regular Saver requires savers to deposit money into the account every month for 12 months.
This amount cannot exceed £ 200 and therefore is not recommended for those who wish to set aside a large amount of savings each month.
The account allows savers to make up to three withdrawals during the 12 month account term without affecting this interest rate.
However, making a fourth withdrawal during this time will see the interest rate drop to 0.35% for the remainder of the term.
DO NOT MISS :
Savers are also informed that they can only have one Flex Regular Saver account open in their name at a time.
The account can be opened jointly between two people but you cannot open a trust account for the benefit of another person.
Savers can open the account on Nationwide’s website, their online banking, or their banking app if they have signed up for these services.
The first deposit to the account must be made within 28 days of opening the account or it will be automatically closed.