Nationwide cuts interest rates to zero
30/11/2008
Today, Nationwide building society cut interest rates on some of its savings accounts to zero. Several other banks have cut their savings rates by more than the 1.5% cut in the Bank of England base rate, which takes effect today.
Nationwide holds nearly £20 million in its savings accounts and current accounts. Interest on Nationwide's Flex and Cash Card current accounts will fall by up to 1.5 points to as low as zero on some tiers. Flex will pay just 0%-1.5%.
The building society's e-Savings and Monthly Income 60+ accounts for those aged 60 and over will suffer rate cuts of 1.5 and 1.55 points to 3.05% and 3% respectively.
Across Nationwide's savings range, rates will be cut by up to 1.6 points. In a statement, Nationwide said: "Having decreased our base mortgage rate by the full 1.5 points, we have to decrease savings rates to ensure we are competitive and sustainable."
Abbey is cutting interest rates on its savings accounts by the same amount: 1.6 points. Its lowest standard rate is 0.5% on its Flexible Passbook Saver, falling to 0.1% if a customer's balance slips below the £500 minimum required to open a savings account.
Nationwide holds nearly £20 million in its savings accounts and current accounts. Interest on Nationwide's Flex and Cash Card current accounts will fall by up to 1.5 points to as low as zero on some tiers. Flex will pay just 0%-1.5%.
The building society's e-Savings and Monthly Income 60+ accounts for those aged 60 and over will suffer rate cuts of 1.5 and 1.55 points to 3.05% and 3% respectively.
Across Nationwide's savings range, rates will be cut by up to 1.6 points. In a statement, Nationwide said: "Having decreased our base mortgage rate by the full 1.5 points, we have to decrease savings rates to ensure we are competitive and sustainable."
Abbey is cutting interest rates on its savings accounts by the same amount: 1.6 points. Its lowest standard rate is 0.5% on its Flexible Passbook Saver, falling to 0.1% if a customer's balance slips below the £500 minimum required to open a savings account.
