Nationwide offers competitive 5% interest rate on regular savings account | Personal Finance | Finance
Following eleven consecutive Bank of England Base Rate hikes, regular savings accounts currently offer some of the highest rates available on the market. Nationwide is offering a particularly attractive deal, as the competitive five percent interest rate is coupled with two more chances to bag an additional £250.
Regular savings accounts work well for people who want to start building up a savings pot, as these accounts typically offer some of the highest interest rates on the market. The terms also encourage savers to pay money into the accounts monthly with limited withdrawals.
Nationwide BS’ Start to Save (Issue 2), which is an online account, is also offering the added benefit of a £250 reward to be snapped up through prize draws.
Savers can open the account with a minimum deposit of £25 and up to £50 can be invested each month.
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Interest is calculated daily and paid annually on the anniversary of opening but the rate is variable, which means it can go up or down depending on the terms.
The Start to Save is also an instant access savings account, which means withdrawals are allowed whenever needed. However, this will have an impact on the qualifying for the prize draw.
To be entered, savers need to increase their account balance by at least £25 (but by no more than £50) in each of the six calendar months leading up to the month of the prize draw.
The first prize draw took place on February 21, 2023, and the upcoming two will fall on August 22, 2023, and February 20, 2024.
The Bank of Scotland falls just behind with its Monthly Saver offering an AER of 5.5 percent.
This account is a 12-month bond and allows savers to deposit £25 to £250 a month. People also must have a Bank of Scotland current account in order to open it.
Unlimited withdrawals are permitted without penalty and after 12 months, the account will change to an Instant Access Savings Account.
